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To bid or not to bid, this is the question: the Italian experience in competitive tendering for local bus services

  • Boitani, Andrea
  • Cambini, Carlo

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 framework 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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File URL: http://hdl.handle.net/10077/5921
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Article provided by ISTIEE, Institute for the Study of Transport within the European Economic Integration in its journal European Transport / Trasporti Europei.

Volume (Year): (2006)
Issue (Month): 33 ()
Pages: 41-53

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Handle: RePEc:sot:journl:y:2006:i:33:p:41-53
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  1. Paul Klemperer, 2004. "Auctions: Theory and Practice," Economics Papers 2004-W09, Economics Group, Nuffield College, University of Oxford.
  2. Paul Klemperer, 2004. "Introduction to Auctions: Theory and Practice
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  5. 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).
  6. 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.
  7. 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.
  8. 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.
  9. Boycko, Maxim & Shleifer, Andrei & Vishny, Robert W, 1996. "A Theory of Privatisation," Economic Journal, Royal Economic Society, vol. 106(435), pages 309-19, March.
  10. 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.
  11. 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.
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