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CTS - Centre for Transport Studies Stockholm (KTH and VTI)
CTS - Centre for Transport Studies Stockholm (KTH and VTI) CTS - Centre for Transport Studies Stockholm (KTH and VTI)
Working papers in Transport Economics

No 2016:20:
Contract design and performance of railway maintenance: effects of incentive intensity and performance incentive schemes

Kristofer Odolinski ()

Abstract: In this paper we study the effect of contract design on the performance of railway maintenance in Sweden, using a panel data set over the period 2003-2013. The marginal effect of incentive intensity is estimated, showing that the power of incentive schemes improve performance as measured by the number of infrastructure failures. In addition, the performance incentive schemes result in a reallocation of effort from failures not causing train delays to failures causing train delays

Keywords: Contract design; Incentive intensity; Maintenance; Railways; (follow links to similar papers)

JEL-Codes: D82; L92; (follow links to similar papers)

39 pages, September 28, 2016

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