Within transport markets, many of which have had substantial regulation in the form of what?
Various licenses and minimum quality standards
3 of 15
Regulation has been used in some markets to do what?
Protect a public sector monopoly from outside competition
4 of 15
What 3 particular transport markets have been deregulated over the past 25 years?
Express buses and coaches (1980) and local bus services (1986). Domestic and EU air passenger transport (1997). EU road freight services (1999)
5 of 15
In all cases, what has been the objective of deregulation?
To improve efficiency through increased competition
6 of 15
Why were local bus services deregulated in 1996?
Market for local bus services had been declining annually since mid-1950s. In order to maintain services, local authorities were obliged to provide ever increasing subsidies.
7 of 15
After deregulation, what was the only barrier to entry left?
An operators license - largely for safety reasons to ensure minimum quality standards.
8 of 15
The system is managed by who?
The regional Traffic Commissioners - who seek to ensure that the behaviour of firms is compliant with the legislation.
9 of 15
Through greater competition, what 3 things were anticipated?
Fares would be lower, service provision and efficiency could increase and cross-subsidisation would be removed.
10 of 15
In a report, the House of Commons Transport Committee commented on what 3 things?
The poor quality and unreliability of services, the use of old inaccessible vehicles and the rude attitude of drives.
11 of 15
Explain the degree of competition in Bristol
First Group operates 95% of all bus services in and around the city - monopoly
12 of 15
Explain the degree of competition in Manchester
There are around 40 companies, large and small, competing for passengers traveling into the city - consistent with monopolistic competition.
13 of 15
Explain the degree of competition in Cambridge
Stagecoach has a near monopoly
14 of 15
Explain the degree of competition in Oxford
The Oxford Bus company, Stagecoach Oxford and various local companies provide services in and around city - consistent with an oligopoly market structure
15 of 15
Other cards in this set
Card 2
Front
What can deregulation facilitate?
Back
Contestability
Card 3
Front
Within transport markets, many of which have had substantial regulation in the form of what?
Back
Card 4
Front
Regulation has been used in some markets to do what?
Back
Card 5
Front
What 3 particular transport markets have been deregulated over the past 25 years?
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