The effect of mergers on efficiency and productivity of public transport services
AbstractMerger is a process whereby two or more companies merge into one company to strengthen their market positions. Merger in the bus transport sector has been prevalent in Europe, and elsewhere, since the early 1990s. A question rarely addressed by researchers of transportation is the extent to which mergers lead to efficiency by which services are provided to the public. This is the substantive issue in this paper in which Norwegian data are used to assess the impact that mergers have on the performances of bus companies. The data cover the period 1995-2002; 1995-1998 are the pre-mergers years and the post-merger years are 1999-2002. The framework for the analyses is that of data envelopment analysis and the Malmquist productivity index (MPI) to investigate the impacts of mergers on efficiency and productivity growth, respectively. It is found that: (1) there is great potential for efficiency and productivity improvements in the bus industry; (2) mergers outperformed non-mergers as far as scale efficiency was concerned; and (3) the merger process led to productivity improvements in the post-merger periods for the reasons that merged companies utilized their scale economies to improve efficiencies while the non-mergers significantly became more technically innovative in order to be competitive. These results are an asset to the less-explored field of the impact of mergers in transportation.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Transportation Research Part A: Policy and Practice.
Volume (Year): 42 (2008)
Issue (Month): 4 (May)
Contact details of provider:
Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cullinane, Kevin & Wang, Teng-Fei & Song, Dong-Wook & Ji, Ping, 2006. "The technical efficiency of container ports: Comparing data envelopment analysis and stochastic frontier analysis," Transportation Research Part A: Policy and Practice, Elsevier, Elsevier, vol. 40(4), pages 354-374, May.
- Jonathan Cowie, 2002. "Acquisition, efficiency and scale economies: An analysis of the British bus industry," Transport Reviews, Taylor & Francis Journals, Taylor & Francis Journals, vol. 22(2), pages 147-157, January.
- Jonathan Cowie & Darinka Asenova, 1999. "Organisation form, scale effects and efficiency in the British bus industry," Transportation, Springer, Springer, vol. 26(3), pages 231-248, August.
- Patrick L. Brockett & Boaz Golany, 1996. "Using Rank Statistics for Determining Programmatic Efficiency Differences in Data Envelopment Analysis," Management Science, INFORMS, INFORMS, vol. 42(3), pages 466-472, March.
- Bjurek, Hans & Hjalmarsson, Lennart, 1995. "Productivity in multiple output public service: A quadratic frontier function and Malmquist index approach," Journal of Public Economics, Elsevier, vol. 56(3), pages 447-460, March.
- James Odeck & Abdulrahim Alkadi, 2001. "Evaluating efficiency in the Norwegian bus industry using data envelopment analysis," Transportation, Springer, Springer, vol. 28(3), pages 211-232, August.
- Karlaftis, Matthew G., 2003. "Investigating transit production and performance: a programming approach," Transportation Research Part A: Policy and Practice, Elsevier, Elsevier, vol. 37(3), pages 225-240, March.
- Kerstens, K., 1996.
"Technical efficiency measurement and explanation of French urban transit companies,"
Transportation Research Part A: Policy and Practice, Elsevier,
Elsevier, vol. 30(6), pages 431-452, November.
- KERSTENS, Kristiaan, 1995. "Technical efficiency measurement and explanation of French urban transit companies," SESO Working Papers, University of Antwerp, Faculty of Applied Economics 1995020, University of Antwerp, Faculty of Applied Economics.
- Juan, Zhichai & Wu, Jianping & McDonald, Mike, 2003. "The socio-economic impacts assessment of advanced convoy driving on motorway," Transportation Research Part A: Policy and Practice, Elsevier, Elsevier, vol. 37(9), pages 731-747, November.
- Tim J. Coelli, 1995.
"Recent Developments In Frontier Modelling And Efficiency Measurement,"
Australian Journal of Agricultural and Resource Economics,
Australian Agricultural and Resource Economics Society, vol. 39(3), pages 219-245, December.
- Coelli, Tim J., 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, Australian Agricultural and Resource Economics Society, vol. 39(03), December.
- Coelli, T. J., 1995. "Recent Developments in Frontier Modelling and Efficiency Measurement," 1995 Conference (39th), February 14-16, 1995, Perth, Australia, Australian Agricultural and Resource Economics Society 148798, Australian Agricultural and Resource Economics Society.
- Odeck, James, 2006. "Congestion, ownership, region of operation, and scale: Their impact on bus operator performance in Norway," Socio-Economic Planning Sciences, Elsevier, Elsevier, vol. 40(1), pages 52-69, March.
- Pacheco, R. R. & Fernandes, E., 2003. "Managerial efficiency of Brazilian airports," Transportation Research Part A: Policy and Practice, Elsevier, Elsevier, vol. 37(8), pages 667-680, October.
- C. Lovell, 2003. "The Decomposition of Malmquist Productivity Indexes," Journal of Productivity Analysis, Springer, Springer, vol. 20(3), pages 437-458, November.
- Viton, Philip A., 1997. "Technical efficiency in multi-mode bus transit: A production frontier analysis," Transportation Research Part B: Methodological, Elsevier, Elsevier, vol. 31(1), pages 23-39, February.
- Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, Elsevier, vol. 2(6), pages 429-444, November.
- Dag Dalen & Andres GÃ³mez-Lobo, 2003. "Yardsticks on the road: Regulatory contracts and cost efficiency in the Norwegian bus industry," Transportation, Springer, Springer, vol. 30(4), pages 371-386, November.
- R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, INFORMS, vol. 30(9), pages 1078-1092, September.
- Bekken, Jon-Terje & Longva, Frode & Fearnley, Nils & Osland, Oddgeir, 2006. "Norwegian experiences with tendered buss services," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 33, pages 29-40.
- Odeck, James, 2000. "Assessing the relative efficiency and productivity growth of vehicle inspection services: An application of DEA and Malmquist indices," European Journal of Operational Research, Elsevier, Elsevier, vol. 126(3), pages 501-514, November.
- Pestana Barros, Carlos & Peypoch, Nicolas, 2010. "Productivity changes in Portuguese bus companies," Transport Policy, Elsevier, vol. 17(5), pages 295-302, September.
- Halkos, George & Tzeremes, Nickolaos, 2012. "Measuring seaports’ productivity: A Malmquist productivity index decomposition approach," MPRA Paper 40174, University Library of Munich, Germany.
- Holmgren, Johan, 2013. "The efficiency of public transport operations – An evaluation using stochastic frontier analysis," Research in Transportation Economics, Elsevier, vol. 39(1), pages 50-57.
- Karlaftis, Matthew G. & Tsamboulas, Dimitrios, 2012. "Efficiency measurement in public transport: Are findings specification sensitive?," Transportation Research Part A: Policy and Practice, Elsevier, Elsevier, vol. 46(2), pages 392-402.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.