How Competition Delivers Positive Results in Transport : A Case Study
In this case study the government is initially the monopoly supplier of travel and freight service - by ferry, jetfoil, and airplane - between two islands. It then allows private operators to enter the industry. The first new operator revolutionize...
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| Format: | Viewpoint |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/1997/12/441759/competition-delivers-positive-results-transport-case-study http://hdl.handle.net/10986/11564 |
| Summary: | In this case study the government is
initially the monopoly supplier of travel and freight
service - by ferry, jetfoil, and airplane - between two
islands. It then allows private operators to enter the
industry. The first new operator revolutionizes the market,
setting off a chain of events that lead to a fall in prices,
enormous growth in the market, more varied and attractive
services for passengers, and more efficient freight services
for business. The experience shows both the dramatic effect
of removing barriers to entry by new firms and how the
different values consumers place on different kinds of
travel time can create market opportunities not foreseen in
the typical demand elasticities used by policy planners and forecasters. |
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