Close this search box.

The Effects of Bus Deregulation on Costs

The Effects of Bus Deregulation on Costs

This paper attempts to explain how published cost savings have been achieved and particularly the impact of changes in wages and working practices within the context of deregulation and privatisation. Amongst metropolitan PTCs almost 19 per cent of a total unit cost reduction of 31 per cent was achieved by productivity improvements. Reductions in wages can only account for 4-8 per cent of cost savings while non-labour costs account for less than 5 per cent. The process of privatisation may be the most influential factor in reducing costs.

Share Content


Related Articles

Deregulating Taxi Services: A Word of Caution

This paper studies pricing and capacity decisions in markets for phone-ordered taxicabs. Firms first choose capacities and then compete in prices. As firm demand increases, so does waiting time. This dampens competition and makes prices too high from the social point of view. Efficiency improves if firms choose large capacities. In a two-firm setting, equilibrium capacities are shown to be larger if both firms maximise total profits than if they maximise profits per cab.

View Journal »