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

Gunnar Alexandersson, Staffan Hultén and Juan J. Jardón

Research in Transportation Economics, 2020, vol. 83, issue C

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.

Keywords: Hybrid markets; Competitive tendering; Contract design; Conflicts; Incentives; Passenger growth; Costs; Public transport (search for similar items in EconPapers)
JEL-codes: L14 L33 L92 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1016/j.retrec.2020.100897

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