Friday, September 23, 2011

Transportation Firm Market Power?

The Surface Transportation Board in New York has stated that Stagecoach, a tourist/sightseeing transportation company, has excessive market power. Stagecoach has about 90% market share after their merger with CitySightsNY. Subsequently Stagecoach increased prices from 10% to 17%, and the transportation authority reasoned that this represents excessive market power.

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