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- W791401468 abstract "This paper contains an analysis of models of competitive local bus services in a deregulated environment. This paper considers the application of economic theory to the analysis of the impact of bus service deregulation and its potential welfare consequences. The paper first questions the relevence of the theory of contestable markets to the situation of local bus services in the UK -following their deregulation in 1986 -because of the ease with which incumbents can adjust prices before entry occurs. The remainder of the paper outlines models of horizontal and vertical product differentiation in competitive bus service provision. Analysis of horizontally differentiated markets (where services differ only in departure time) suggests that given specific adjustments rules markets will be symmetric, with equal fares and equally spaced departure times. In contrast, with vertical product differentiation an outcome is possible in which only two firms compete with distinct qualities of service, and different fares. The firms can earn super-normal profits even in equilibria, through overall welfare (in time of economic efficiency) may be below that which occurred in a regulated environment.(a) for the covering abstract of the seminar see IRRD 816535." @default.
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- W791401468 date "1987-01-01" @default.
- W791401468 modified "2023-09-24" @default.
- W791401468 title "ECONOMIC THEORY AND BUS DEREGULATION ---TRANSPORT POLICY. PROCEEDINGS OF SEMINAR A HELD AT THE PTRC TRANSPORT AND PLANNING SUMMER ANNUAL MEETING, UNIVERSITY OF BATH, ENGLAND 7-11 SEPTEMBER 1987. VOLUME P288" @default.
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