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Competitive procurement design: Evidence from regional passenger railway services in Germany

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  • Hunold, Matthias
  • Wolf, Christoph

Abstract

We study competitive awarding procedures of short haul railway passenger services in Germany from 1995 to 2011 by means of a newly collected data set. In particular, we use regression techniques to investigate the determinants of the number of bidders, the identity of the winning bidder and the subsidy level. We find that there are more bidders when the contract duration is high and the revenue risk low. The dominant operator is more likely to win contracts if it is the incumbent, the network is large, the contract duration is high, when used rolling stock is admitted and when there are few other bidders.

Suggested Citation

  • Hunold, Matthias & Wolf, Christoph, 2013. "Competitive procurement design: Evidence from regional passenger railway services in Germany," ZEW Discussion Papers 13-009, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  • Handle: RePEc:zbw:zewdip:13009
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    File URL: https://www.econstor.eu/bitstream/10419/69506/1/736283064.pdf
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    References listed on IDEAS

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    1. Hunold, Matthias & Laitenberger, Ulrich & Licht, Georg & Nikogosian, Vigen & Stenzel, André & Ullrich, Hannes & Wolf, Christoph, 2011. "Modernisierung der Konzentrationsberichterstattung: Endbericht," ZEW Expertises, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research, number 110525, May.
    2. Heike Link & Rico Merkert, 2011. "Success Factors And Pitfalls Of Regional Rail Franchising In Germany," Articles, International Journal of Transport Economics, vol. 38(2).
    3. Amaral, Miguel & Saussier, Stéphane & Yvrande-Billon, Anne, 2009. "Auction procedures and competition in public services: The case of urban public transport in France and London," Utilities Policy, Elsevier, vol. 17(2), pages 166-175, June.
    4. Boitani, Andrea & Cambini, Carlo, 2006. "To bid or not to bid, this is the question: the Italian experience in competitive tendering for local bus services," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 33, pages 41-53.
    5. Han Hong & Matthew Shum, 2002. "Increasing Competition and the Winner's Curse: Evidence from Procurement," Review of Economic Studies, Oxford University Press, vol. 69(4), pages 871-898.
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    Cited by:

    1. Link, Heike, 2016. "A Two-Stage Efficiency Analysis of Rail Passenger Franchising in Germany," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 76-92.
    2. Juan J. Montero, 2014. "Rail Transport: A Balance Sheet," EUI-RSCAS Working Papers p0413, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).

    More about this item

    Keywords

    competitive tendering; market entry; networks; public procurement; railroads;

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation

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