How big should transit be? Evidence on the benefits of reorganization from the San Francisco Bay Area

This paper studies whether the many public urban transit providers in the San Francisco Bay Area could realize cost economies by consolidating into larger systems. In this discussion, any benefits of rationalization are excluded, since these could be achieved without organizational changes.The results support the formation of larger multi-modal systems in the Bay Area. But care must be taken in selecting the candidates for reorganization, and a broad-brush approach could result in important lost opportunities for cost reduction. But if these economies are taken into account, and transit grows in the right directions, the benefits could be substantial.