Policy makers and public administrators are challenged in organizing and overseeing diverse public transportation services. Proper organization of such services can result in efficiently meeting varied mobility needs, often spread across large geographic areas, with limited resources. Unfortunately, limited academic research employing advanced economic concepts and tools to address this issue in a rigorous manner has been completed. In the context of small urban and rural transit no work has been done.

In this presentation theoretical concepts, empirical methods, and measures of industry structure will be discussed. Relevant findings from previous studies on transit in urban areas and the potential implications of the study on the organization of transit in small urban and rural communities will be presented.