The economics of bus deregulation in Britain

This paper reviews some of the arguments which have been put forward on the economics of bus deregulation, particularly the paper by Gwilliam and others. It argues that the experience of road haulage licensing is relevant. The evidence there suggests that liberalization has not had the adverse effects that many predicted and that in most respects one could expect bus deregulation to have no less favourable consequences. The main difference between buses and road haulage is over how far bus drivers might revert to the old practices of the 1920s of chasing, tailing, etc. which were said at the time to be a major cause of consumer dissatisfaction. The paper reviews the economics of some of these practices and suggests which might be discounted and which need further attention.