Transport Economics

Theory, application and policy

by Graham Mallard and Stephen Glaister

Chapter 12

Essay questions

  1. “Private ownership is always preferable to public ownership.” With reference to the transport sector: discuss.
  2. Evaluate the argument that London's bus industry has experienced significant growth because it is still regulated, and that other authorities should learn from this and regulate their bus industries accordingly.
  3. “The privatisation of British Rail has been a disaster.” - Discuss.
  4. With reference to two privatisations/deregulations in the European transport sector, discuss the effects that such policies have had.


  1. This exercise requires extra reading:
    The following is the pay-off matrix for a well-known simultaneous game known as the Prisoner’s Dilemma. Using it, answer the following questions.

    (a) Are there dominant strategies for the players? If so, what are they?
    (b) What is the result of this game?
    (c) Is this the socially optimal result for the players?
    (d) If it is not the socially optimal result: what is and how could the players get to it?
The Prisoner’s Dilemma