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By Undustrial (registered) - website | Posted December 14, 2010 at 02:03:30
The point here is letting them increase fares without putting council on the hook in front of voters, who don't tend to look to fondly on this kind of nonsense.
I'm not much of a fan of classical economics, but sometimes they're just...relevant. When you charge more money for something, less people want it. And if you charge too much money for something, you actually make less money than you would have charging less. Furthermore, sometimes attracting customers requires an initial capital outlay which may not pay itself back overnight. People cannot base their schedule on a bus route which does not exist, or is not reliable. That's the kind of thing people get fired for. And people will not instantly flock to it the second it opens, or becomes better serviced. This will involve investing money and taking risks.
The same type of behaviour is seen with GO and Coach Canada - cutting the Guelph line, constantly raising prices on others - these are major policy decisions which send a clear message: "don't ride the bus".
"Today, the notion of progress in a single line without goal or limit seems perhaps the most parochial notion of a very parochial century." — Lewis Mumford
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