Introduction

During a period from 1976 to the early 1980s the Airline Deregulation Act, the Staggers Rail Act, the Motor Carrier Act, and the Bus Regulatory Reform Act essentially liberalized inter-state transport in the USA with knock-on effects rippling through to intra-state regulation. Australia, for instance, is radically modifying its domestic aviation strategy as it moves away from the long-established two-airline policy. Conversely, Canada is struggling with what has essentially become a two-airline domestic industry since deregulation. From the mid-1970s economic liberalization has spread through transport markets with supplying industries being freed from price and entry constraints and privatisation taking effect in many sectors. The up-rising of 'contestability theory' in the late 1970s led many to believe that ultra-free market entry and exit would ensure efficiency in the sector with maximum benefits being conferred on users. The chapter also presents an overview of the key concepts discussed in this book.