IDEAS home Printed from https://ideas.repec.org/a/eee/retrec/v6y2001i1p121-142.html
   My bibliography  Save this article

Red bus, green bus: Market organization, driver incentives, safety, and sorting

Author

Listed:
  • Rusco, Frank W.
  • Walls, W. David

Abstract

We examine minibus competition in Hong Kong between two similar types of minibus firms: those that operate green minibuses and those that operate red minibuses. The two types of firms are distinguished by their industrial organizations and by the restrictions placed on their operations by government regulators and triad societies. Green minibuses are subject to government fare, level of service, and route regulation, and the drivers are paid a fixed monthly salary. Red minibuses are not subject to government fare, level of service, or route regulations, but they are regulated by triad societies, and their drivers are residual claimants who either own or lease their minibus. The institutional and operational characteristics are used to formulate testable implications on accident rates and journey times based on differing driver behavior under these alternative industrial organizations. The empirical results show that red minibuses have a substantially higher accident rate and lower peak-period journey times than do green minibuses, and that green minibuses have slightly lower journey times in the off-peak period. Efficient sorting may imply that passengers with high values of travel time savings and access to both types of buses may choose to ride red minibuses during peak periods and switch to green minibuses in off-peak periods

Suggested Citation

  • Rusco, Frank W. & Walls, W. David, 2001. "Red bus, green bus: Market organization, driver incentives, safety, and sorting," Research in Transportation Economics, Elsevier, vol. 6(1), pages 121-142, January.
    • Handle: RePEc:eee:retrec:v:6:y:2001:i:1:p:121-142
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0739-8859(01)80009-3
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mohring, Herbert, 1983. "Minibuses in urban transportation," Journal of Urban Economics, Elsevier, vol. 14(3), pages 293-317, November.
    2. Oldale, Alison, 1998. "Local bus deregulation and timetable instability," LSE Research Online Documents on Economics 6756, London School of Economics and Political Science, LSE Library.
    3. Alison Oldale, 1998. "Local Bus Deregulation and Timetable Instability," STICERD - Economics of Industry Papers 21, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tiznado, Ignacio & Galilea, Patricia & Delgado, Felipe & Niehaus, Markus, 2014. "Incentive schemes for bus drivers: The case of the public transit system in Santiago, Chile," Research in Transportation Economics, Elsevier, vol. 48(C), pages 77-83.
    2. Leif Sörensen & Jan Schlüter, 2021. "How do contract types and incentives influence driver behavior?−An analysis of the Kigali bus network," Palgrave Communications, Palgrave Macmillan, vol. 8(1), pages 1-11, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rainer Nitsche, 2002. "On the Effectiveness of Anit-Predation Rules," CIG Working Papers FS IV 02-12, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    2. John Sutton, 2001. "Rich Trades, Scarce Capabilities: Industrial Development Revisited," STICERD - Economics of Industry Papers 28, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    3. Fageda, Xavier & Sansano, Sergi, 2018. "Factors influencing prices and frequencies in the interurban bus market: Evidence from Europe," Transportation Research Part A: Policy and Practice, Elsevier, vol. 111(C), pages 266-276.
    4. King, David A. & Goldwyn, Eric, 2014. "Why do regulated jitney services often fail? Evidence from the New York City group ride vehicle project," Transport Policy, Elsevier, vol. 35(C), pages 186-192.
    5. Li, Shanjun & Kahn, Matthew E. & Nickelsburg, Jerry, 2015. "Public transit bus procurement: The role of energy prices, regulation and federal subsidies," Journal of Urban Economics, Elsevier, vol. 87(C), pages 57-71.
    6. Small, Kenneth A, 2004. "6. Road Pricing And Public Transport," Research in Transportation Economics, Elsevier, vol. 9(1), pages 133-158, January.
    7. Hörcher, Daniel & Tirachini, Alejandro, 2021. "A review of public transport economics," Economics of Transportation, Elsevier, vol. 25(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:retrec:v:6:y:2001:i:1:p:121-142. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/620614/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.