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The Practice with Different Institutional Models Within the Framework

In: Competition for Public Transport Services

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  • Arne Beck

Abstract

As already explained in the essay presented in Chap. 4 the regulatory environment for all sectors of public transport in Germany was changed during market reforms at federal and state level in the mid-1990s. The political objectives at the national level were to introduce competition and thus enhance quality and efficiency. One of the main amendments of the market reforms concerning the German Passenger Transport Act (Personenbeförderungsgesetz – PBefG, which covers all non-railway services, i.e. light rail and bus, was the introduction of a definition of non-commercial services (see § 13a of the PBefG) in addition to the existing framework for commercial services. Unlike commercial services which are based on market initiative, non-commercial services are characterized by authority initiative and an obligation to tender them. Despite the new definition, most market participants continued to classify their services as commercial.

Suggested Citation

  • Arne Beck, 2012. "The Practice with Different Institutional Models Within the Framework," Contributions to Economics, in: Competition for Public Transport Services, edition 127, chapter 0, pages 51-80, Springer.
    • Handle: RePEc:spr:conchp:978-3-7908-2802-3_5
    DOI: 10.1007/978-3-7908-2802-3_5
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