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Sub story to regular feature: Issue 571 20 May 2011

Franchising: a next best solution for cities

Franchising of bus routes could be the way to encourage greater competition in some local bus markets, says the Commission. 

It admits that replacing competition on the road with competition for exclusive operating rights is not its preferred remedy to market failure.

“Our general preference is for remedies that provide the basis for effective and sustained competition in the market compared with those that promote competition ‘for the market’,” it says....

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