Quote:
Originally Posted by Truenorth00
If they didn't work with monopolies, I struggle to see how they would work with more competition. Bus service in Canada primarily gets its competition from driving. Not other bus services.
It was better in Mexico because Mexico has more demand. Simple as that. Fewer private vehicles. More of the population is sensitive to fuel prices. Etc.
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I agree. The main advantage of a free market economy verses a regulated monopoly is that the completion will tend to drive the prices down. What made Greyhound's regulated monopoly challenging was the requirement to continue to operate unprofitable routes. In theory the extra profits, from having a monopoly, on profitable routes would help pay for those unprofitable routes, but as ridership dropped, they no longer fully covered those costs. What we are seeing with deregulation is that operators end up running only the profitable routes, unless they receive a subsidy to cover their losses.
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