Factors Affecting Tender Prices in Local Bus Transport
Competitive tendering of local bus services in Germany has received increased attention. Employing Seemingly Unrelated Regression analyses, we observe that prices have regionally varying determinants.
For example, while prices throughout most of the federal state of Hesse increase over time, prices in the Munich area decrease. Moreover, a
simple OLS-regression confirms that the number of bidders has a clear price-decreasing
effect, highly significant on a 99.9 per cent level.
The article of Dr. Beck and Dr. Walter has been published by the well known "Journal of Transport Economics and Policy " Volume 47, Issue 2, May 2013, Pages 265–278