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Free Content Factors Affecting Tender Prices in Local Bus Transport

Evidence from Germany

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Competitive tendering of local bus services has received increased attention in Germany, but little is known about the factors affecting tendering prices. Based on a comprehensive dataset of 157 tender procedures, we show that contract prices have regionally varying determinants and developments. Whereas contract prices have increased over time in most of the federal state of Hesse, contract prices in the Munich area appear to have decreased. The operators' ability to deploy buses productively generally has a cost-decreasing impact. This ability has to be enhanced by public transport authorities setting appropriate tender conditions regarding vehicle schedule, frequency, and timetable.
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Document Type: Research Article

Publication date: May 1, 2013

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