Working papers in Transport Economics
How many want to drive the bus? analyzing the number of bids for public transport bus contracts
Abstract: This paper examines how different factors relating to
contract characteristics, and the operational and tender environment affect
the number of unique bidders placing bids in tenders for bus contracts. A
generalized Poisson model is used with a comprehensive data set containing
most of the recently tendered bus contracts in Sweden, spanning the period
2007-2015. The main finding from the analysis is that most contract
characteristics change participation in tenders by around 0.1-0.5 bidders.
Operator-restricting measures, such as special requirements on buses, have
a similar limited effect. Further, the number of tenders that are open at
the same time as a specific tender was shown to reduce participation by
almost 2 bidders. Finally, there is evidence that the local competitive
environment is of importance, and the public transport authorities
therefore need to be concerned with entry barriers in their tenders.
Keywords: Tendering; Bidding; Bus; Public transport; Contract design; Count data; (follow links to similar papers)
JEL-Codes: C31; H57; L11; L16; L91; (follow links to similar papers)
36 pages, November 14, 2017
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