Deregulation and privatization of Britain's local bus industry

Ian Savage*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

19 Scopus citations

Abstract

In 1986,the British government deregulated the majority of the local bus industry, cut the amount of subsidy, and privatized many public bus companies. Unit costs have declined significantly, cross-subsidies have been reduced, and there has been innovation in operating practices. However, mergers have increased concentration, and demand has declined due to the turmoil of service changes and the loss of network integration. In London an alternative policy has been adopted whereby there is Demsetz competition for short-term monopoly rights. The paper argues that this regime will lead to greater benefits in the long run.

Original languageEnglish (US)
Pages (from-to)143-158
Number of pages16
JournalJournal of Regulatory Economics
Volume5
Issue number2
DOIs
StatePublished - Jun 1993

ASJC Scopus subject areas

  • Economics and Econometrics

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