  We present a directed variant of Salop (1979) model to analyze bus transport
dynamics. The players are operators competing in cooperative and
non-cooperative games. Utility, like in most bus concession schemes in emerging
countries, is proportional to the total fare collection. Competition for
picking up passengers leads to well documented and dangerous driving practices
that cause road accidents, traffic congestion and pollution. We obtain
theoretical results that support the existence and implementation of such
practices, and give a qualitative description of how they come to occur. In
addition, our results allow to compare the current or base transport system
with a more cooperative one.
