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The Distance Factor in Swedish Bus Contracts How far are operators willing to go?

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  • Vigren, Andreas

Abstract

One of the factors differentiating public transport operators the most in bus services is, arguably, the respective location, and thus distance from, their workplaces to the area of a procured contract. Sub-optimal depot locations relative the lines run result in disadvantages in knowledge about the contract and the risk of running unpaid (or dead running) bus kilometers, leading to higher costs and/or less revenue and could affect an operator’s probability to participate in tenders. As previous studies have discussed, this is a relevant competitive factor, but the transport literature lacks studies aiming to assess the size of this distance factor. This paper examines what impact operators’ distance to tendered bus contracts has on their probability to participate in the tender, and how this probability differs across operator types.

Suggested Citation

  • Vigren, Andreas, 2020. "The Distance Factor in Swedish Bus Contracts How far are operators willing to go?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 188-204.
    • Handle: RePEc:eee:transa:v:132:y:2020:i:c:p:188-204
    DOI: 10.1016/j.tra.2019.11.010
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    Cited by:

    1. Odeck, James & Høyem, Harald, 2021. "The impact of competitive tendering on operational costs and market concentration in public transport: The Norwegian car ferry services," Research in Transportation Economics, Elsevier, vol. 90(C).

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    More about this item

    Keywords

    Competitive tendering; Distance; Dead running kilometers; Bus; Entry; Competition;
    All these keywords.

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General

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