Q 1) Describe the economics of the urban transportation ecosystem as it exists in cities like San Jose or San Francisco. • What are the key modes of transit? (Take a broad view of potential transit options.) • For each transit mode, who are the key players in the market, on both the demand side and the supply side? What is the market structure– perfect competition, monopolistic competition, monopoly, or oligopoly? Are there barriers to entry? How does government play a role in each market? • How did the entry of ridesharing services/ platforms like Uber and Lyft affect the various incumbent players in the transit markets? • Economists define market failures as cases in which the unregulated market fails to achieve efficiency (maximize total surplus). Are there market failures associated with urban transit markets? If so, what are they? Have they been made better or worse by the entry of ridesharing services?

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