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Quality Competition in Bus Services. Some Welfare Implications of Bus Deregulation

Quality Competition in Bus Services. Some Welfare Implications of Bus Deregulation

The authors find that a competitive equilibrium will have only two firms, providing that services of different quality are at different fares. They consider factors influencing consumers' welfare under competition and where there is a public monopolist. Where there is already competition between buses and taxis, there may be no scope for minibuses as a third competitor.

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Effects of Deregulation on Service Co-ordination in the Metropolitan Areas

The paper examines the impact of deregulation on service co-ordination in the British conurbations outside London. Co-ordination decreased significantly in respect of timetables, fares and passenger information in particular in the period immediately following deregulation. Since then some aspects of co-ordination have improved. On balance, the author’s judgement is that there has been a net decrease in consumer welfare.

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