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“To Bid or Not to Bid, This is the Question: The Italian Experience in Competitive Tendering for Local Bus Services”

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  • Boitani, Andrea
  • Cambini, Carlo

Abstract

Competitive tendering is a popular mechanism for the provision of local bus services when a major objective is subsidy savings. Despite uncertainties in the legal rules some competitive tendering was implemented in Italy since 1998. The evidence so far is that participants were limited in number, the incumbents were almost everywhere able to gain the franchise, whilst subsidy savings were in many cases negligible. If some “political” conditions favouring more effective tendering procedures are not fulfilled, other regimes should be considered in order to obtain substantial subsidy savings.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 2253.

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Date of creation: Jul 2006
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Handle: RePEc:pra:mprapa:2253

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Keywords: Local bus services; Competitive Tendering;

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References

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  1. Andrea Boitani & Carlo Cambini, 2004. "Le gare per i servizi di trasporto locale in Europa e in Italia: molto rumore per nulla?," ECONOMIA E POLITICA INDUSTRIALE, FrancoAngeli Editore, vol. 2004(122).
  2. Paul Klemperer, 2004. "Auctions: Theory and Practice," Online economics textbooks, SUNY-Oswego, Department of Economics, number auction1, March Cit.
  3. Boycko, Maxim & Shleifer, Andrei & Vishny, Robert W, 1996. "A Theory of Privatisation," Economic Journal, Royal Economic Society, vol. 106(435), pages 309-19, March.
  4. Paul Klemperer, 2004. "Introduction to Auctions: Theory and Practice
    [Auctions: Theory and Practice]
    ," Introductory Chapters, Princeton University Press.
  5. Hensher, David A. & Houghton, Erne, 2004. "Performance-based quality contracts for the bus sector: delivering social and commercial value for money," Transportation Research Part B: Methodological, Elsevier, vol. 38(2), pages 123-146, February.
  6. Dag Dalen & Andres Gómez-Lobo, 2003. "Yardsticks on the road: Regulatory contracts and cost efficiency in the Norwegian bus industry," Transportation, Springer, vol. 30(4), pages 371-386, November.
  7. C. Cambini & M. Filippini, 2003. "Competitive Tendering and Optimal Size in the Regional Bus Transportation Industry: An Example from Italy," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 74(1), pages 163-182, 03.
  8. Crocker, Keith J & Masten, Scott E, 1996. "Regulation and Administered Contracts Revisited: Lessons from Transaction-Cost Economics for Public Utility Regulation," Journal of Regulatory Economics, Springer, vol. 9(1), pages 5-39, January.
  9. Boitani Andrea & Cambini Carlo, 2002. "Il trasporto pubblico locale in Italia. Dopo la riforma i difficili albori di un mercato," Mercato Concorrenza Regole, Società editrice il Mulino, issue 1, pages 45-72.
  10. David A. Hensher & Ian P. Wallis, 2005. "Competitive Tendering as a Contracting Mechanism for Subsidising Transport: The Bus Experience," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 39(3), pages 295-322, September.
  11. Anne Yvrande-Billon, 2006. "The Attribution Process Of Delegation Contracts In The French Urban Public Transport Sector: Why Competitive Tendering Is A Myth," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 77(4), pages 453-478, December.
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Citations

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Cited by:
  1. Marcella Nicolini & Andrea Boitani & Carlo Scarpa, 2010. "Do Competition and Ownership Matter? Evidence from Local Public Transport in Europe," Working Papers 2010.9, Fondazione Eni Enrico Mattei.
  2. Rafael Lalive & Armin Schmutzler, 2011. "Auctions vs negotiations in public procurement: which works better?," ECON - Working Papers 023, Department of Economics - University of Zurich.
  3. Augustin, Katrin & Walter, Matthias, 2010. "Operator changes through competitive tendering: Empirical evidence from German local bus transport," Research in Transportation Economics, Elsevier, vol. 29(1), pages 36-44.
  4. Francesco, Gastaldi & Lucia, Quaglino & Carlo, Stagnaro, 2012. "Il trasporto pubblico locale e la concorrenza. Cambiare paradigma per salvare il servizio: il caso ligure
    [Local Public Transportation and Competition. Changing Paradigm to Save the Service: The Ca
    ," MPRA Paper 49464, University Library of Munich, Germany.
  5. Daniel Albalate & Germà Bel & Joan Calzada, 2010. "Urban transport governance reform in Barcelona," IREA Working Papers 201009, University of Barcelona, Research Institute of Applied Economics, revised Jun 2010.
  6. Hunold, Matthias & Wolf, Christoph, 2013. "Competitive procurement design: Evidence from regional passenger railway services in Germany," ZEW Discussion Papers 13-009, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  7. Lalive, Rafael & Schmutzler, Armin, 2008. "Exploring the effects of competition for railway markets," International Journal of Industrial Organization, Elsevier, vol. 26(2), pages 443-458, March.

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