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How do different payment schemes to operators affect public transport concessions? A microeconomic model

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  • Sepúlveda, Juan Pablo
  • Galilea, Patricia

Abstract

In many large cities worldwide, private companies operate public transport systems under concession contracts granted by the local governments. The performance of these concessions, including the quality of service and amount of subsidy, is often an issue of public debate. In this context, a major factor that determines performance is the concession contract. Payment mechanisms (established in the contract) influence the operator's decisions by providing certain incentives. Therefore, it is important to study the effects of the payment mechanism on the performance of the transport system.

Suggested Citation

  • Sepúlveda, Juan Pablo & Galilea, Patricia, 2020. "How do different payment schemes to operators affect public transport concessions? A microeconomic model," Transport Policy, Elsevier, vol. 93(C), pages 27-35.
    • Handle: RePEc:eee:trapol:v:93:y:2020:i:c:p:27-35
    DOI: 10.1016/j.tranpol.2020.04.016
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    More about this item

    Keywords

    Contracts; Public transport; Concessions; Bus operators; Incentives; Economic modelling;
    All these keywords.

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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