MPW Economics Discussion Board: Rail bosses accused of 'ripping off' passengers Rail firms, which have increased fares by up to 11 per cent, are making a combined profit of £330 mil

Sunday, 4 January 2009

econinfohunter said...: Abusing monopoly power which results in high prices, lower choices, and maybe lower quality - it can be said to be a market failure because public transport is a merit good and is underconsumed. -Young.; 5 January 2009 at 16:57
econinfohunter said...: This represents A decrease in people's real income because the effect of the price rises reduce people's purchasing power and disposable income. - Alex; 5 January 2009 at 17:00
econinfohunter said...: It's the right choice for firms to increase prices in a recession but such high increases are unnecessary, greedy and harmful to the public welfare. _ Junjie; 5 January 2009 at 17:02
econinfohunter said...: The rail regulator is not doing its job - so they should change the formula rpi + y - they should decrease the y. - Harry; 5 January 2009 at 17:04
econinfohunter said...: Rail operators are monopolists who are in a market lacking competition which results in productive and allocative inefficiency. This grabs consumer surplus. - Susan.; 5 January 2009 at 17:07
econinfohunter said...: For train companies it is a good way to generate higher revenues by charging higher fares for train tickets because the demand for tickets is relatively inelastic such as the season tickets purchased by the commuters. - Luna.; 5 January 2009 at 17:10