Economics of Land Transport in Singapore - Market Structures and Public Transport Policy

Jointly developed by LTA and MOE and launched in August 2010 for A'Levels Economics students, this is the second of a series of four case study videos that illustrate how economic concepts and principles apply to the land transport system in Singapore.

Market Structures and Public Transport Policy in Singapore:
The different modes of public transport in Singapore operate under different market structures, evolving with the needs of the commuters. In the early 1960s, public bus services operated in a monopolistic competition market as opposed to the duopolistic structure today. The mass rapid transit (MRT) system started off with a monopoly before evolving to a duopoly today. With lower barriers to entry and more firms entering the market, taxi services operate in an oligopoly. Find out why each industry is shaped as such and how they fit into the market structure continuum, and why government intervention is necessary.

Category:

Education

Tags:

• market structure
• MRT
• public transport
• bus
• barriers to entry
• monopoly
• oligopoly
• monopolistic competition
• perfect competition
• government intervention
• economics
• Land Transport
• LTA