Regulation of buses in cities

An examination of the main types of regulation - control of routes, rates, timetables, and standards - applied to the provision of bus services in cities and the effects of this regulation on travelers is presented. The following conclusions are drawn: (i) safety, noise, and pollution standards should be established; (ii) timetables should be regulated, possibly in the form of subsidies to operators who keep them; (iii) route operation and fares need not be controlled; and (iv) the introduction of new bus services should not be restricted. The need for bus subsidies does not justify the public operation or economic regulation of bus services. Grants related to passenger mileage on all or selected routes appear to be the most desirable form of subsidy, because they directly encourage the provision of services desired by travelers.