Advanced Search
MyIDEAS: Login to save this article or follow this journal

Evaluating Alternative Policy Responses to Franchise Failure: Evidence from the Passenger Rail Sector in Britain

Contents:

Author Info

  • Andrew S. J. Smith
  • Phil Wheat
Registered author(s):

    Abstract

    One potential problem with franchising (competitive tendering) is how to deal with situations where the franchisee is unwilling to continue operating the franchise within the contract period. This paper studies the effects of the franchising authority's response to franchise failure in passenger rail in Britain, which saw the affected operators placed onto management or short-term renegotiated contracts for an extended period. We find that operators on management contracts saw a sharp deterioration in efficiency. Further, the contract inefficiency persisted, though was eliminated by competitive refranchising. In contrast, costs for renegotiated franchises were no higher (statistically) than industry best practice. © 2012 LSE and the University of Bath

    Download Info

    If 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.
    File URL: http://www.catchword.com/cgi-bin/cgi?ini=bc&body=linker&reqidx=0022-5258(20120101)46:1L.25;1-
    Download Restriction: Access to full text is restricted to subscribers.

    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 Info

    Article provided by London School of Economics and University of Bath in its journal Journal of Transport Economics and Policy (JTEP).

    Volume (Year): 46 (2012)
    Issue (Month): 1 (January)
    Pages: 25-49

    as in new window
    Handle: RePEc:tpe:jtecpo:v:46:y:2012:i:1:p:25-49

    Contact details of provider:
    Web page: http://www.bath.ac.uk/e-journals/jtep

    Related research

    Keywords:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Phill Wheat & William Greene & Andrew Smith, 2014. "Understanding prediction intervals for firm specific inefficiency scores from parametric stochastic frontier models," Journal of Productivity Analysis, Springer, vol. 42(1), pages 55-65, August.
    2. Wheat, Phill & Smith, Andrew, 2012. "Is the choice of (t−T) in Battese and Coelli (1992) type stochastic frontier models innocuous? Observations and generalisations," Economics Letters, Elsevier, vol. 116(3), pages 291-294.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:tpe:jtecpo:v:46:y:2012:i:1:p:25-49. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).

    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.