This chapter attempts to determine the state of the art of market policy in the transport sector. It aims to bring descriptions of different approaches together into an economically rational concept for the future shaping of market policy. It begins by outlining types of market policy in the transport sector, and historical solutions to the problem of organising transport markets. It then considers how to interpret transport market policy on the basis of public choice theory, to achieve more rational decision making. Theoretical and practical considerations lead to the conclusion that the state should withdraw from transport markets (`liberalisation'), through deregulation, privatisation, and competition rules. Possible forms of supportive policies and politics are discussed for the three fields of liberalisation and for the future distribution of transport system roles between market and state.
Abstract