Abstract
ALTHOUGH THERE ARE COMPARATIVELY FEW EXAMPLES OF PRIVATELY-PROVIDED URBAN TRANSIT SERVICES, RESEARCH SUGGESTS THAT SUCH SERVICES ARE GENERALLY POSSIBLE. THE ARTICLE ESTIMATES A SIMULATION MODEL TO TEST THE HYPOTHESIS THAT EXISTING `PUBLIC UTILITY' TRANSIT SERVICES SERVE TO DETER PRIVATE-CARRIER ENTRY. IF SUCH ENTRY DOES OCCUR THE ARTICLE QUESTIONS THE CERTAINTY THAT A WELFARE GAIN RESULTS. THE AUTHOR OUTLINES A WELFARE CRITERION, INDEPENDENT OF THE DISTRIBUTION OF CONSUMERS SURPLUS GAIN, WHICH ALLOWS THE CONCLUSION THAT SUCH A GAIN IS VERY OFTEN LIKELY TO BE THE RESULT.