Government has played a role in public transportation's development and implementation from the very beginning. Transportation industries are heavily regulated, which is no surprise considering the railroad industry was one of the first industries in the United States to face government regulation. Price, entry, exit and operating rules have all been subject to governmental control (Winston, 1985).
The spatial nature of the transportation product, the importance of service quality, and problems related to peaking demand have all played their part in gaining attention from the government (Winston, 1985). Because government provided a great part of the infrastructure, there has been considerable interest in determining how this infrastructure should be priced and what guidelines should be followed in making future investments (Winston, 1985). In Federal transit funding formulas, the ecological and spatial structure of cities are used to prescribe transportation policy thereby reinforcing existing travel patterns and promoting highways as solutions to congestion (Yago, 1983).
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