A PRODUCT DIFFERENTIATION MODEL OF BUS DEREGULATION

This study examines the welfare effects of bus deregulation in the United Kingdom. This paper assumes that consumers choose private or public transport as a long-term decision, and this is influenced by income level. Those consumers who choose public transport then use the services which are least costly in terms of price and convenience. This two-stage framework involves elements of both vertical and horizontal product differentiation, and yields a new perspective on the effects of bus deregulation. It is found that allocative inefficiency from deregulation can be substantial, and can amount to a third of the costs of operating the bus system.

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  • Accession Number: 00618963
  • Record Type: Publication
  • Files: TRIS, ATRI
  • Created Date: Feb 29 1992 12:00AM