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Hybrid markets in public transport – contract design, performance and conflicts

Author

Listed:
  • Alexandersson, Gunnar
  • Hultén, Staffan
  • Jardón, Juan J.

Abstract

Nearly all regional public bus services in Sweden have been competitively tendered for 30 years. The way to perform tenders has undergone significant changes since the first tenders were carried out in the late 1980s. The most important changes are: 1) pure gross cost contracts have been replaced with contracts that include bonus and malus clauses to safeguard the quality of the service or contracts with passenger incentives; 2) bundling of bus lines into larger networks; 3) requirements on operators to provide buses that use specific types of fuel, for example electricity or gas; and 4) bundling of bus and railway services into one contract.

Suggested Citation

  • Alexandersson, Gunnar & Hultén, Staffan & Jardón, Juan J., 2020. "Hybrid markets in public transport – contract design, performance and conflicts," Research in Transportation Economics, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:retrec:v:83:y:2020:i:c:s0739885920300950
    DOI: 10.1016/j.retrec.2020.100897
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    References listed on IDEAS

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    1. Pyddoke, Roger & Lindgren, Hanna, 2018. "Outcomes from new contracts with “strong” incentives for increasing ridership in bus transport in Stockholm," Research in Transportation Economics, Elsevier, vol. 69(C), pages 197-206.
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    3. Vigren, Andreas, 2016. "Cost efficiency in Swedish public transport," Research in Transportation Economics, Elsevier, vol. 59(C), pages 123-132.
    4. Bray, David & Mulley, Corinne, 2013. "Workshop 4: Designing contracts/concessions: What has worked and what has not and why?," Research in Transportation Economics, Elsevier, vol. 39(1), pages 226-231.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Hybrid markets; Competitive tendering; Contract design; Conflicts; Incentives; Passenger growth; Costs; Public transport;
    All these keywords.

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation

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