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Estimation of losses due to the existence of monopolies in urban bus transport in Poland

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  • Wolański, Michał

Abstract

The aim of this paper is to present the different approaches to demonopolisation used in Polish and European urban public transport, compare the efficiency of these models which have proven popular in Poland as well as to estimate the total losses incurred due to the high monopolisation of Polish public transport. The methodology of the research is based on econometric modelling (Stochastic Frontier Analysis) and on a survey conducted by the author among Public Transport Authorities. The author proves that the modern London model (competition for the market) is more efficient in Polish conditions than the classic German one (communal monopoly). The very popular in Poland combination of the two above formulas – the co-existence of a Public Transport Authority with a monopolistic publicly owned operator – is surprisingly the least efficient. Total losses due to the existence of monopolies in Polish urban bus transport are estimated for the year 2007 at the level of 10-14% of its total budget (ca. 117-149 m EURO/year). In some cities, the losses can be as high as 20-25% of the total remuneration to the public bus operator. In others, public monopolists can be as efficient as private operators in the competitive model.

Suggested Citation

  • Wolański, Michał, 2011. "Estimation of losses due to the existence of monopolies in urban bus transport in Poland," MPRA Paper 38525, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:38525
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    References listed on IDEAS

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    1. Matthias Walter, 2011. "Some Determinants of Cost Efficiency in German Public Transport," Journal of Transport Economics and Policy, University of Bath, vol. 45(1), pages 1-20, January.
    2. Miller, David R, 1970. "Differences among Cities, Differences among Firms, and Costs of Urban Bus Transport," Journal of Industrial Economics, Wiley Blackwell, vol. 19(1), pages 22-32, November.
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    More about this item

    Keywords

    public transport; demonopolisation; Stochastic Frontier Analysis;
    All these keywords.

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law

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