COMPETITION ON AN URBAN BUS ROUTES

Abstract

An investigation of how a stage carriage bus market might react if quantity regulation were to be removed is presented. The method of analysis is by stochastic simulation and the values used pertain to a heavily used corridor across central London. It is concluded that in some circumstances product differentiation would occur, with vehicles smaller than the present ones offering faster services, possibly at higher fares. Overall service frequencies would improve and waiting times fall, yielding an expansion of the total market. Amongst consumers there would be both gainers (predominantly at the top end of the market) and loser (mainly at the bottom). Increased congestion might be caused, depending upon the success with which the improved service quality offered attracted private car and taxi users on to buses. (Author/TRRL)