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Factors Affecting Tender Prices in Local Bus Transport – Evidence from Germany

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.

published in: "Journal of Transport Economics and Policy" 05/2013

For example, while prices throughout most of the federal state of Hesse increase over time, prices in the Munich area decrease. Optimisation of bus utilisation in general has a cost-decreasing impact, confirming that public transport authorities can reduce prices via adequate transport planning. 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.

This article has been published in "Journal of Transport Economics and Policy" 47 (2), May 2013, Pages 265–278 (Link)

A direct link to a preliminary working paper version can be found here.