Bus Transport Essay -- Economics

Bus TransportA) The nature of the competition in the bus transport market is veryspecific. The article suggests competition is utilise to keep go forth newentrants to the market thus maintaining market voice for the largerfirms, typifyive competition takes place between small operators orbetween a large and a small operator.Further grounds suggests the competition was not of substantialbenefit to the consumer and only used to tick one over on the firmsrivals, more services run on routes which where already reasonablywell serviced. However some methods of competition showed tenablebenefits to consumers, charged lower fares than the incumbent. Yetin the long run raptorial pricing is not a good thing, as it will at last push out competition, creating a monopoly where the pricewill soon go back up again.Non-price competition is lacking in the market, difficult forsuppliers to dissever their products. As long as the price isreasonable consumers will act on which service require s them to waitfor the shortest amount of time, i.e. the first bus to derive or themost reliable service, not prepared to wait for a later bus whichmaybe more comfortable.Cumulatively this type of competition in a market has negativeeffects, can lead to congestion, pollution, and derangement ofservices. Large companies that actively compete are likely to looseout in the long run due to the nature of the Kinhed demand curvaturetheory suffering, as...