Franchising appears to offer the benefits of competition without the effort of its actual practice. Experience shows that compared with contracts more generally, two problems are particularly acute in the case of franchises: 1, because they confer monopoly and because of the various frictions involved, franchises afford a measure of protection to the incumbent; 2, along with monopoly, franchises lead to substantial monopoly power and its abuse. This note discusses these and other problems with regard to the operation of bus services. (TRRL)

  • Corporate Authors:

    Department for Transport, England

    Economics Directorate, 2 Marsham Street
    London,   England  SWiP 3EB
  • Publication Date: 1985-3

Media Info

  • Pagination: 10 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00396546
  • Record Type: Publication
  • Source Agency: Transport Research Laboratory
  • Report/Paper Numbers: Monograph
  • Files: ITRD, TRIS
  • Created Date: Sep 30 1985 12:00AM