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Competitive tendering and structural changes: An example from the bus industry

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  • Mathisen, Terje Andreas
  • Solvoll, Gisle

Abstract

This article evaluates the structural changes that have taken place in the Norwegian bus industry after competitive tendering was introduced in 1994 in order to show that this procurement mechanism implies more than just efficiency gains. In a long-term view the many takeovers and increasing ownership links among the transport companies may weaken the competitive element of tendering and lead to an unwanted market situation with only a limited number of suppliers. To maintain market competition, the transport authorities should differentiate their procurement strategy and use competitive tendering together with other public procurement approaches.

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  • 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.
    • Handle: RePEc:eee:trapol:v:15:y:2008:i:1:p:1-11
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    5. John Stanley, 2011. "Public Transport Liberalization: Achievements and Future Directions," Chapters, in: Matthias Finger & Rolf W. Künneke (ed.), International Handbook of Network Industries, chapter 16, Edward Elgar Publishing.
    6. 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.
    7. Alain Desdoigts & Fernando Jaramillo, 2017. "Learning by Doing, Inequality, and Sustained Growth: A Middle-class Perspective," EUSP Department of Economics Working Paper Series 2017/05, European University at St. Petersburg, Department of Economics.
    8. 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.
    9. Jørgensen, Finn & Santos, Georgina, 2014. "Charges on transport – To what extent are they passed on to users?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 69(C), pages 183-195.
    10. Joan Calzada & Christian Jaag & Urs Trinkner, 2010. "Universal service auctions in liberalized postal markets," Chapters, in: Michael A. Crew & Paul R. Kleindorfer (ed.), Heightening Competition in the Postal and Delivery Sector, chapter 17, Edward Elgar Publishing.
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    13. Testa, Francesco & Iraldo, Fabio & Frey, Marco & Daddi, Tiberio, 2012. "What factors influence the uptake of GPP (green public procurement) practices? New evidence from an Italian survey," Ecological Economics, Elsevier, vol. 82(C), pages 88-96.
    14. Aarhaug, Jørgen & Fearnley, Nils, 2016. "Deregulation of the Norwegian long distance express coach market," Transport Policy, Elsevier, vol. 46(C), pages 1-6.
    15. Rosell, Jordi, 2017. "Urban bus contractual regimes in small- and medium-sized municipalities: Competitive tendering or negotiation?," Transport Policy, Elsevier, vol. 60(C), pages 54-62.
    16. Finn Jørgensen & Terje Andreas Mathisen, 2009. "Using Standardized Revenue and Cost Norm Analyses to Reveal Subsidy Fraud in Contracted Public Transport Services," Transport Reviews, Taylor & Francis Journals, vol. 30(3), pages 299-313, April.
    17. Filippini, M. & Koller, M. & Masiero, G., 2015. "Competitive tendering versus performance-based negotiation in Swiss public transport," Transportation Research Part A: Policy and Practice, Elsevier, vol. 82(C), pages 158-168.
    18. 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.
    19. 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.
    20. Aarhaug, Jørgen & Farstad, Eivind & Fearnley, Nils & Halse, Askill Harkjerr, 2018. "Express coaches: An up-hill battle after liberalization?," Research in Transportation Economics, Elsevier, vol. 72(C), pages 82-91.
    21. Rolim, Fernando & Brasileiro, Anísio & Santos, Enilson, 2010. "Competition in Brazilian bus and coach services - The results of recent competitive tendering processes," Research in Transportation Economics, Elsevier, vol. 29(1), pages 45-51.
    22. Mathisen, Terje Andreas, 2016. "Competitive tendering and cross-shareholding in public passenger transport," Transport Policy, Elsevier, vol. 48(C), pages 45-48.
    23. Testa, Francesco & Iraldo, Fabio & Frey, Marco & Daddi, Tiberio, 2012. "What factors influence the uptake of GPP (green public procurement) practices? New evidence from an Italian survey," Ecological Economics, Elsevier, vol. 82(C), pages 88-96.
    24. Daniel Albalate & Germà Bel & Joan Calzada, 2012. "Governance and regulation of urban bus transportation: Using partial privatization to achieve the better of two worlds," Regulation & Governance, John Wiley & Sons, vol. 6(1), pages 83-100, March.

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