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Contestability in the UK bus industry? The National Bus Company, and the "Tilling Mark II" effect

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  • Langridge, R.
  • Sealey, R.

Abstract

Contestable Market theory has been described as the 'Fourth Age of Transport Policy'. Politicians and economists applied this theory to achieve lower output cost without the need for structural change. In the United Kingdom, this theory provided the rationale behind the 1984 'Buses' White Paper. However, the subsequent atomisation of the National Bus Company ordered by Nicholas Ridley, the then Secretary of State for Transport, went against the contestability theory. The subsequent re-oligopolisation of the industry merely re-visited the past and could be described as the Tilling Mark II effect.

Suggested Citation

  • Langridge, R. & Sealey, R., 2000. "Contestability in the UK bus industry? The National Bus Company, and the "Tilling Mark II" effect," Transport Policy, Elsevier, vol. 7(2), pages 105-115, April.
    • Handle: RePEc:eee:trapol:v:7:y:2000:i:2:p:105-115
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    References listed on IDEAS

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    1. Corinne Mulley & Mike Wright, 1986. "Buy-outs and the privatisation of National Bus," Fiscal Studies, Institute for Fiscal Studies, vol. 7(3), pages 1-24, August.
    2. Shepherd, William G, 1984. ""Contestability" vs. Competition," American Economic Review, American Economic Association, vol. 74(4), pages 572-587, September.
    3. Baumol, William J & Willig, Robert D, 1986. "Contestability: Developments since the Book," Oxford Economic Papers, Oxford University Press, vol. 38(0), pages 9-36, Suppl. No.
    4. Cairns, Robert D & Mahabir, Dhanayshar, 1988. "Contestability: A Revisionist View," Economica, London School of Economics and Political Science, vol. 55(218), pages 269-276, May.
    5. Morrison, Steven A & Winston, Clifford, 1987. "Empirical Implications and Tests of the Contestability Hypothesis," Journal of Law and Economics, University of Chicago Press, vol. 30(1), pages 53-66, April.
    6. David Banister & Kenneth Button (ed.), 1991. "Transport in a Free Market Economy," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-11439-9, September.
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    2. Philippe Gagnepain & Marc Ivaldi & Catherine Muller-Vibes, 2011. "The Industrial Organization of Competition in Local Bus Services," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 32, Edward Elgar Publishing.

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