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

Andreas Vigren

Transportation Research Part A: Policy and Practice, 2020, vol. 132, issue C, 188-204

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.

Keywords: Competitive tendering; Distance; Dead running kilometers; Bus; Entry; Competition (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1016/j.tra.2019.11.010

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