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Paying for performance: Uncertainty, asymmetric information and the payment model

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  • Hooper, Louise

Abstract

Privatisation has led to a growing interest in more complex contractual forms designed to give public transport operators the incentives for effort that maximise value for money. Contract theory provides a rich research basis for selecting an appropriate contractual form, with an emphasis on the effects of uncertainty and asymmetric information. To date, however, there have been few applications of contract theory in the field of transport. This paper identifies the key empirical results from the multi-disciplinary literature to help transport researchers and practitioners place contractual decision-making in the broader theoretical context, suggesting aspects of transport contracting that merit future research.

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  • Hooper, Louise, 2008. "Paying for performance: Uncertainty, asymmetric information and the payment model," Research in Transportation Economics, Elsevier, vol. 22(1), pages 157-163, January.
  • Handle: RePEc:eee:retrec:v:22:y:2008:i:1:p:157-163
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    1. Veeneman, Wijnand, 2016. "Public transport governance in the Netherlands: More recent developments," Research in Transportation Economics, Elsevier, vol. 59(C), pages 116-122.
    2. Veeneman, Wijnand & van de Velde, Didier, 2014. "Developments in public transport governance in the Netherlands: A brief history and recent developments," Research in Transportation Economics, Elsevier, vol. 48(C), pages 41-47.

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