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Factors Affecting Tender Prices in Local Bus Transport Evidence from Germany

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  • Arne Beck
  • Matthias Walter

Abstract

Competitive tendering of local bus services has received increased attention in Germany, but little is known about the factors affecting tendering prices. Based on a comprehensive dataset of 157 tender procedures, we show that contract prices have regionally varying determinants and developments. Whereas contract prices have increased over time in most of the federal state of Hesse, contract prices in the Munich area appear to have decreased. The operators' ability to deploy buses productively generally has a cost-decreasing impact. This ability has to be enhanced by public transport authorities setting appropriate tender conditions regarding vehicle schedule, frequency, and timetable. © 2013 LSE and the University of Bath

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  • Arne Beck & Matthias Walter, 2013. "Factors Affecting Tender Prices in Local Bus Transport Evidence from Germany," Journal of Transport Economics and Policy, University of Bath, vol. 47(2), pages 265-278, May.
    • Handle: RePEc:tpe:jtecpo:v:47:y:2013:i:2:p:265-278
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    Cited by:

    1. Germà Bel & Jordi Rosell, 2016. "Public and Private Production in a Mixed Delivery System: Regulation, Competition and Costs," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 35(3), pages 533-558, June.
    2. 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.
    3. 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).

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