Limitation of Competition in and for the Public Transportation Market in Developing Countries Lessons from Latin American Cities

This paper analyzes the limitations of providing public transit service because of competition in the market. Evidence from seven cities in Latin America is used to show how this service arrangement leads to inflated fares, oversupply of buses, and low-quality service. The paper then analyzes the so...

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Main Author: Ardila, A.
Format: Journal Article
Language:EN
Published: 2012
Online Access:http://hdl.handle.net/10986/5169
id okr-10986-5169
recordtype oai_dc
spelling okr-10986-51692021-04-23T14:02:21Z Limitation of Competition in and for the Public Transportation Market in Developing Countries Lessons from Latin American Cities Ardila, A. This paper analyzes the limitations of providing public transit service because of competition in the market. Evidence from seven cities in Latin America is used to show how this service arrangement leads to inflated fares, oversupply of buses, and low-quality service. The paper then analyzes the solution advocated by the literature-competition for the market as a means to properly arrange public transit service. Next, four cities that have implemented public transit service in this competitive market are analyzed. It is found that competition for the market offers a solution but needs to be complemented by solid barriers to market entry, centralized fare collection, and the creation of a bus rapid transit (BRT) line, if demand justifies it. BRT creates a system in which competition for the market blossoms and demands for much-needed institutional capacity in operators and government agencies are met. Finally, after implementing these measures, cities should create integrated transit networks to complete the reform and institutionalize strong government service planning and supervision. The provision of actual service should remain in private hands. 2012-03-30T07:31:38Z 2012-03-30T07:31:38Z 2008 Journal Article Transportation Research Record 0361-1981 http://hdl.handle.net/10986/5169 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Latin America
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language EN
geographic_facet Latin America
relation http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description This paper analyzes the limitations of providing public transit service because of competition in the market. Evidence from seven cities in Latin America is used to show how this service arrangement leads to inflated fares, oversupply of buses, and low-quality service. The paper then analyzes the solution advocated by the literature-competition for the market as a means to properly arrange public transit service. Next, four cities that have implemented public transit service in this competitive market are analyzed. It is found that competition for the market offers a solution but needs to be complemented by solid barriers to market entry, centralized fare collection, and the creation of a bus rapid transit (BRT) line, if demand justifies it. BRT creates a system in which competition for the market blossoms and demands for much-needed institutional capacity in operators and government agencies are met. Finally, after implementing these measures, cities should create integrated transit networks to complete the reform and institutionalize strong government service planning and supervision. The provision of actual service should remain in private hands.
format Journal Article
author Ardila, A.
spellingShingle Ardila, A.
Limitation of Competition in and for the Public Transportation Market in Developing Countries Lessons from Latin American Cities
author_facet Ardila, A.
author_sort Ardila, A.
title Limitation of Competition in and for the Public Transportation Market in Developing Countries Lessons from Latin American Cities
title_short Limitation of Competition in and for the Public Transportation Market in Developing Countries Lessons from Latin American Cities
title_full Limitation of Competition in and for the Public Transportation Market in Developing Countries Lessons from Latin American Cities
title_fullStr Limitation of Competition in and for the Public Transportation Market in Developing Countries Lessons from Latin American Cities
title_full_unstemmed Limitation of Competition in and for the Public Transportation Market in Developing Countries Lessons from Latin American Cities
title_sort limitation of competition in and for the public transportation market in developing countries lessons from latin american cities
publishDate 2012
url http://hdl.handle.net/10986/5169
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