The Winner’s Curse
Winning a tender in the sector of public transport is risky with respect to the feasibility of suffering unplanned losses.
published in: Der Nahverkehr 04/2006
As demonstrated by several national and international case studies bidders and public authorities tend to underestimate this phenomenon frequently. Referring to several case studies this article unfolds potential risk fields connected to public transport tenders and presents some possibilities to reduce risk premiums for both bidders and public transport authorities.