Should Competition Between Regulated Public Transport and Autonomous Ride-sharing Providers be Allowed? An Outlook into a Possible Transport Paradox

Provision of public transport with autonomous vehicles may enable the implementation of more flexible services, characterised by a reduction of the vehicle's capacity (and increase in the number of vehicles) - leading to fewer stops, better frequencies, and more individualised services (origins and destinations). If public transport provision is centralised, increasing flexibility will lead to reductions in average travel times (although not to the optimal capacity), as the provider internalises congestion costs; however, if public transport is provided in competitive conditions, it may lead to situations in which the entire society ends up worse off, representing a clear transportation paradox.