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Quality and Public Transport Service Contracts

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  • Valerio Gatta

    ()
    (Facoltà di Scienze Statistiche ed Economiche, Università di Roma "La Sapienza")

  • Edoardo Marcucci

    ()
    (Department of Economics, Università di Urbino "Carlo Bo")

Abstract

Public authorities and transport operators are both involved in the provision of public transport services. There is a contrast between the social goals of the former and the private ones of the latter. Regulation plays an important role especially failing competition. Service contracts are the natural method to set bilateral After a brief description of the most important regulatory procedures, we focus our attention on the quality framework in service contracts. In recent years the inclusion of quality requirements in contracts is becoming common practice, especially when adopting price cap regulation. This paper suggests a criterion for service quality definition, measurement and integration in contracts for the production of socially valuable transport services. Using stated preferences methods and choice-based conjoint analysis to analyse customer preferences we estimate the passengers’ evaluation of different service features and calculate a service quality index. A case study demonstrates the procedure to follow for measuring service quality in local public transport.

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File URL: http://www.econ.uniurb.it/RePEc/urb/wpaper/WP_07_08.pdf
File Function: First version, 2007
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Bibliographic Info

Paper provided by University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini in its series Working Papers with number 0708.

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Length: 12 pages
Date of creation: 2007
Date of revision: 2007
Handle: RePEc:urb:wpaper:07_08

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Web page: http://www.econ.uniurb.it/
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Keywords: service quality; stated preferences; service contract.;

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References

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  1. Swait, Joffre, 2001. "A non-compensatory choice model incorporating attribute cutoffs," Transportation Research Part B: Methodological, Elsevier, vol. 35(10), pages 903-928, November.
  2. Billette de Villemeur, Etienne, et al, 2003. "Optimal Pricing and Price-Cap Regulation in the Postal Sector," Journal of Regulatory Economics, Springer, vol. 24(1), pages 49-62, July.
  3. Das, Satya P, 1980. "On the Effect of Rate of Return Regulation under Uncertainty," American Economic Review, American Economic Association, vol. 70(3), pages 456-60, June.
  4. Kenneth E. Train, 1991. "Optimal Regulation: The Economic Theory of Natural Monopoly," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200848, December.
  5. Sappington, David E M & Sibley, David S, 1988. "Regulating without Cost Information: The Incremental Surplus Subsidy Scheme," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 29(2), pages 297-306, May.
  6. Cremer, Helmuth & De Rycke, Marc & Grimaud, Andre, 1997. "Service Quality, Competition, and Regulatory Policies in the Postal Sector," Journal of Regulatory Economics, Springer, vol. 11(1), pages 5-19, January.
  7. de Palma, André & Picard, Nathalie, 2005. "Route choice decision under travel time uncertainty," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(4), pages 295-324, May.
  8. Hensher, David A. & Stopher, Peter & Bullock, Philip, 2003. "Service quality--developing a service quality index in the provision of commercial bus contracts," Transportation Research Part A: Policy and Practice, Elsevier, vol. 37(6), pages 499-517, July.
  9. William J. Baumol & Alvin K. Klevorick, 1970. "Input Choices and Rate-of Return Regulation: An Overview of the Discussion," Bell Journal of Economics, The RAND Corporation, vol. 1(2), pages 162-190, Autumn.
  10. Angela S. Bergantino & Etienne Billette de Villemeur & Annalisa Vinella, 2006. "A Model of Partial Regulation in the Maritime Ferry Industry," series 0010, Dipartimento di Scienze Economiche e Metodi Matematici - Università di Bari, revised Jan 2006.
  11. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D., 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304.
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Cited by:
  1. Lupo, Toni, 2013. "Handling stakeholder uncertain judgments in strategic transport service analyses," Transport Policy, Elsevier, vol. 29(C), pages 54-63.
  2. P. A. Ferrari & S. Salini, 2008. "Measuring Service Quality: The Opinion of Europeans about Utilities," Working Papers 2008.36, Fondazione Eni Enrico Mattei.
  3. Silaghi Simona, 2010. "Quality Of Public Transportation Services In Urban Area Of Oradea," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 469-474, December.
  4. Eric N. AIDOO & William AGYEMANG & Jane E. MONKAH & Francis K. AFUKAAR, 2013. "Passenger’S Satisfaction With Public Bus Transport Services In Ghana: A Case Study Of Kumasi–Accra Route," Theoretical and Empirical Researches in Urban Management, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 8(2), pages 33-44, May.
  5. Cascetta, Ennio & Cartenì, Armando, 2014. "The hedonic value of railways terminals. A quantitative analysis of the impact of stations quality on travellers behaviour," Transportation Research Part A: Policy and Practice, Elsevier, vol. 61(C), pages 41-52.
  6. Mouwen, Arnoud & Rietveld, Piet, 2013. "Does competitive tendering improve customer satisfaction with public transport? A case study for the Netherlands," Transportation Research Part A: Policy and Practice, Elsevier, vol. 51(C), pages 29-45.

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