The Short and Long-Run Cost of Bus Transport in Urban Areas | Synapse
February 28, 2026
The Short and Long-Run Cost of Bus Transport in Urban Areas
Key Points
This research investigates how costs associated with municipal bus operations change over time.
Analysis of bus operation costs from 1961 to 1971
Examination of peak mile cost in relation to total costs
Assessment of scale inefficiencies in municipal bus systems
Evidence of diseconomies of scale in bus operations
Peak mile costs increase in relation to total operating costs over the studied period
Indicates that larger scale operations may not lead to cost savings
Abstract
The authors find evidence of diseconomies of scale in municipal bus operation. They examine costs between 1961 and 1971, and find that the cost of a peak mile is increasing in proportion to total cost.