There are two other theories I propose for this project analysis: 1.

Price Elasticity of Demand that is a measure used in economy to show the quantity demanded of a good or service to a change in its price. In our case we can apply this theory if we are talking about a future change of the toll charged, if we consider that one of the Governmental bridges might be reconstructed and an other one might be built in 2012. There are also 2 characteristics that are important in this case for the determination of the demand elasticity: Availability of substitute goods/or services the other two bridges that says the closer and easier to access the substitutes are, the higher the elasticity of the price is likely to be. If there are no close substitutes, the demand is inelastic. Necessity the more necessary a good/or service is, the lower the elasticity, as people will buy it no matter what in our case, the elasticity of demand is probably lowest when the two other bridges, that are free of charge, are fully occupied during the peak hours.

A company considering a price change must know what the net effect will be and what does that mean as a change in the total revenue. Generally, any change in price will have two effects: The price effect that means an increase in unit price will tend to increase the revenue, and vice-versa The quantity effect that means that an increase in unit price will tend to lead to fewer units sold, while a decrease in unit price will tend to lead to more units sold.

The two effects affect total revenue in opposite directions. The percentage change in total revenue is equal to the percentage change in quantity demanded plus the percentage change in price. Sources: http://en.wikipedia.org/wiki/Price_elasticity_of_demand

2. Government Competition which refers to those markets in our case India that still have to deal with less perfect competition and protectionism. Competition forces firms to innovate and adopt least-cost methods of production. It is the key to economic prosperity in a capitalist economy worldwide. Regulation of an industry in or case Express Railways in India has three primary dimensions: technical, economic and competition. These three

elements have to be distributed between the sectoral regulators and competition authority. In India there is an institution called CCI ( Competition Comission of India ) that has as a primary objective to protect the consumers interest and sustain a fair market competition, in order to assure an efficient economic environment. It cannot be denied that there is a requirement of competition in all industries in order to develop their productivity and benefit the consumers, but in markets like India, where certain industries ( like the new Express Railways operated on BOT basis, Like DND Flyway is ) are still learning how to function and sustain themselves, there are allowed temporarily exceptions, if those sectors are not ready to face the open competition. Protection in pre-liberalisation era in India has left many firms inefficient and uncompetitive, but the question remains: which is better Protection or Competition? Sources: http://www.competitionlawindia.com/