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

  • Hunold, Matthias
  • Wolf, Christoph
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    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.

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    File URL: http://econstor.eu/bitstream/10419/69506/1/736283064.pdf
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    Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 13-009.

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    Date of creation: 2013
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    Handle: RePEc:zbw:zewdip:13009
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    1. Han Hong, 2000. "Increasing Competition and the Winner's Curse: Evidence from Procurement," Econometric Society World Congress 2000 Contributed Papers 1628, Econometric Society.
    2. 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”," MPRA Paper 2253, University Library of Munich, Germany.
    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. 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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