Notes that privatization and deregulation are concepts used frequently over the last decade, also in the transport context. Discusses the meaning and relevance of these concepts in the passenger transport sector. Deals with consequences for social welfare of various organizational forms, examining private versus public, competition versus co‐ordination and the mixed form “public planning and competitive tendering for operation”. First, discusses a proposed multi‐billion public transport and ring‐road project in Stockholm in terms of private or public ownership and benefits and costs. Discovers that there are severe problems related to a private profit maximizing regime in the passenger transport sector, especially so for local and regional transport and road transport.
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