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This book develops an alternative solution to urban transportation dilemmas that is based on economic analysis while remaining realistic about political constraints on policy-makers. The authors estimate that efficient pricing and service policies could save more than $10 billion in annual net benefits over current practices, but argue that powerful, entrenched political and institutional forces will continue to thwart efficient economic solutions to improve urban transportation. They believe, however, that some form of privatization would likely improve social welfare more than an efficient public sector system. Facing fewer operating restrictions, greater economic incentives, and stronger competitive pressures, private suppliers could significantly improve the efficiency of urban operations and offer services that are more responsive to the needs of all travelers.
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