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The limits to competition in urban bus services in developing countries

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  • Estache, Antonio
  • Gomez-Lobo, Andres

Abstract

The authors make the case for the return of regulation in the organization of urban bus services in developing countries. During the past three decades urban public transport policy has gone through several phases. The 1980s and 1990s were characterized by liberalization of the sector from public ownership and monopoly provision. The experience of several countries, in particular Chile, indicates that a full liberalization of the sector may not be the welfare-maximizing option. The authors discuss the market failures that justify this claim and present the regulatory options available in this emerging new role of government. Throughout the paper they illustrate ideas with examples from Chile, Colombia, and a few other countries.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3207.

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Date of creation: 01 Feb 2004
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Handle: RePEc:wbk:wbrwps:3207

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Keywords: Labor Policies; Roads&Highways; Economic Theory&Research; Environmental Economics&Policies; Banks&Banking Reform; Urban Transport; Inter-Urban Roads and Passenger Transport; Roads&Highways; Environmental Economics&Policies; Banks&Banking Reform;

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  1. Richard Schmalensee, 1978. "Entry Deterrence in the Ready-to-Eat Breakfast Cereal Industry," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 305-327, Autumn.
  2. Gagnepain, P. & Ivaldi, M., 1999. "Incentive Regulatory Policies: the Case of Public Transit Systems in France," Papers 99.515, Toulouse - GREMAQ.
  3. Jean-Jaques Laffont & Jean Tirole, 1985. "Auctioning Incentive Contracts," Working papers 403, Massachusetts Institute of Technology (MIT), Department of Economics.
  4. Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
  5. Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, December.
  6. Andrei Shleifer, 1985. "A Theory of Yardstick Competition," RAND Journal of Economics, The RAND Corporation, vol. 16(3), pages 319-327, Autumn.
  7. Mohring, Herbert, 1972. "Optimization and Scale Economies in Urban Bus Transportation," American Economic Review, American Economic Association, vol. 62(4), pages 591-604, September.
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Cited by:
  1. Daniel Albalate & Germà Bel & Joan Calzada, 2010. "Urban transport governance reform in Barcelona," IREA Working Papers 201009, University of Barcelona, Research Institute of Applied Economics, revised Jun 2010.
  2. Zhi-Chun Li & William Lam & S. Wong, 2012. "Optimization of Number of Operators and Allocation of New Lines in an Oligopolistic Transit Market," Networks and Spatial Economics, Springer, vol. 12(1), pages 1-20, March.
  3. repec:hal:journl:halshs-00103116 is not listed on IDEAS
  4. Kenneth A. Small, 2007. "Urban Transportation Policy: A Guide and Road Map," Working Papers 060724, University of California-Irvine, Department of Economics.

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