there are now at least two companies (Lucky Star and some other one) providing Boston - New York bus rides for $15, plus one of them seems to also provide bus rides from New York to Washington DC. Colloquially this is called “Chinese bus” and back when these enterprising Chinese people started this business, they were underselling Greyhound big time. Now I think Greyhound lowered prices, but the Chinese are still underselling them.
Well, so what is the economic explanation for the fact that they or a whole bunch of other similar companies have not mushroomed on the same model to drive out Greyhound on all the big inter-city routes? Is it the case of Greyhound using some routes to subsidize others, so that perhaps on various other routes the Greyhound rates are closer to the marginal cost than their Boston - New York route? Or has there been an increase in government regulation that prevents formation of new such companies and the expansion of the two existing ones?