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How many want to drive the bus? analyzing the number of bids for public transport bus contracts

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Abstract

This paper examines how different factors relating to contract characteristics, and the operational and tender environment affect the number of unique bidders placing bids in tenders for bus contracts. A generalized Poisson model is used with a comprehensive data set containing most of the recently tendered bus contracts in Sweden, spanning the period 2007-2015. The main finding from the analysis is that most contract characteristics change participation in tenders by around 0.1-0.5 bidders. Operator-restricting measures, such as special requirements on buses, have a similar limited effect. Further, the number of tenders that are open at the same time as a specific tender was shown to reduce participation by almost 2 bidders. Finally, there is evidence that the local competitive environment is of importance, and the public transport authorities therefore need to be concerned with entry barriers in their tenders.

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  • Vigren, Andreas, 2017. "How many want to drive the bus? analyzing the number of bids for public transport bus contracts," Working papers in Transport Economics 2017:13, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    • Handle: RePEc:hhs:ctswps:2017_013
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    Cited by:

    1. Camén, Carolina & Tsaxiri, Panagiota & Aldenius, Malin & Lidestam, Helene, 2020. "Flexibility in contract design - is that possible?," Research in Transportation Economics, Elsevier, vol. 83(C).
    2. Vigren, Andreas, 2020. "The Distance Factor in Swedish Bus Contracts How far are operators willing to go?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 188-204.
    3. Krieger, Bastian & Zipperer, Vera, 2022. "Does green public procurement trigger environmental innovations?," Research Policy, Elsevier, vol. 51(6).
    4. Papaioannou, Panagiotis & Georgiadis, Georgios & Nikolaidou, Anastasia & Politis, Ioannis, 2020. "Public Transport tendering and contracting arrangements in countries under regulatory transition: The case of Cyprus," Research in Transportation Economics, Elsevier, vol. 83(C).

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    More about this item

    Keywords

    Tendering; Bidding; Bus; Public transport; Contract design; Count data;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General

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