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20 years of competitive tendering in the Norwegian bus industry – An analysis of bidders and winning bids

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  • Aarhaug, Jørgen
  • Fearnley, Nils
  • Gregersen, Fredrik A.
  • Norseng, Robert Bjørnøy

Abstract

Our paper investigates the developments in the Norwegian bus industry following the ramp-up of competitive tendering since the early 2000s. We analyse a complete dataset of all 232 local bus contracts awarded through competitive tendering in Norway since 1995. We also utilize the Central Register of Establishments and Enterprises (CRE) for structural developments in the bus industry.

Suggested Citation

  • Aarhaug, Jørgen & Fearnley, Nils & Gregersen, Fredrik A. & Norseng, Robert Bjørnøy, 2018. "20 years of competitive tendering in the Norwegian bus industry – An analysis of bidders and winning bids," Research in Transportation Economics, Elsevier, vol. 69(C), pages 97-105.
  • Handle: RePEc:eee:retrec:v:69:y:2018:i:c:p:97-105
    DOI: 10.1016/j.retrec.2018.05.012
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    References listed on IDEAS

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    1. Pesendorfer, Martin & Cantillon, Estelle, 2007. "Combination Bidding in Multi-Unit Auctions," CEPR Discussion Papers 6083, C.E.P.R. Discussion Papers.
    2. Aarhaug, Jørgen & Fearnley, Nils, 2016. "Deregulation of the Norwegian long distance express coach market," Transport Policy, Elsevier, vol. 46(C), pages 1-6.
    3. Longva, Frode & Osland, Oddgeir, 2010. "Regulating the regulator: The impact of professional procuring bodies on local public transport policy and its effectiveness," Research in Transportation Economics, Elsevier, vol. 29(1), pages 118-123.
    4. Vigren, Andreas, 2014. "Costs for Swedish public transport authorities in tendered bus contracts," Working papers in Transport Economics 2014:22, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    5. Hensher, David A., 2007. "Bus transport: Economics, policy and planning," Research in Transportation Economics, Elsevier, vol. 18(1), pages 1-507, January.
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    7. 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, University of Bath, vol. 39(3), pages 295-322, September.
    8. Mathisen, Terje Andreas & Solvoll, Gisle, 2008. "Competitive tendering and structural changes: An example from the bus industry," Transport Policy, Elsevier, vol. 15(1), pages 1-11, January.
    9. Vigren, Andreas, 2016. "Cost efficiency in Swedish public transport," Research in Transportation Economics, Elsevier, vol. 59(C), pages 123-132.
    10. Bekken, Jon-Terje & Longva, Frode & Fearnley, Nils & Osland, Oddgeir, 2006. "Norwegian experiences with tendered buss services," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 33, pages 29-40.
    11. Mathisen, Terje Andreas, 2016. "Competitive tendering and cross-shareholding in public passenger transport," Transport Policy, Elsevier, vol. 48(C), pages 45-48.
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    Cited by:

    1. Ole Jonny Klakegg & Julien Pollack & Lynn Crawford, 2020. "Preparing for Successful Collaborative Contracts," Sustainability, MDPI, vol. 13(1), pages 1-18, December.
    2. Lunke, Erik B. & Fearnley, N. & Aarhaug, J., 2021. "Public transport competitiveness vs. the car: Impact of relative journey time and service attributes," Research in Transportation Economics, Elsevier, vol. 90(C).
    3. Xiaowei Wang & Wuyan Long & Meiyue Sang & Yang Yang, 2022. "Towards Sustainable Urbanization: Exploring the Influence Paths of the Urban Environment on Bidders’ Collusive Willingness," Land, MDPI, vol. 11(2), pages 1-14, February.
    4. Sheng, Dian & Meng, Qiang, 2020. "Public bus service contracting: A critical review and future research opportunities," Research in Transportation Economics, Elsevier, vol. 83(C).
    5. Nerhagen, Lena & Brandt, Daniel & Mortazavi, Reza, 2023. "Use of public transport as a means to reach national climate objectives - On the importance of accounting for spatial differences and costs," Transport Policy, Elsevier, vol. 131(C), pages 56-65.

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    More about this item

    Keywords

    Bus; Competitive tender; Cost; Competition;
    All these keywords.

    JEL classification:

    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L90 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - General
    • R49 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Other

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