A theoretical study on yardstick competition and franchise bidding based on a dynamic model

This study develops a dynamic model based on the static model of Harada and Yamauchi (2014), which compares yardstick competition with franchise bidding. The authors focus on collusion among firms, which is one of the differences between dynamic and static models. The results of the new model reveal that the Shleifer-style yardstick competition, which can effectively function under the static model, does not effectively function under the dynamic model. On the other hand, franchise bidding may effectively function under certain conditions. Thus, the authors demonstrate that franchise bidding is superior to yardstick competition.

• Record URL:
  • https://doi.org/10.1016/j.tranpol.2017.03.005
• Record URL:
  • https://www.sciencedirect.com/science/article/pii/S0967070X17301105
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/29485010
• Supplemental Notes:
  • Abstract reprinted with permission of Elsevier.
• Authors:
  • Harada, Shumpei
  • Yamauchi, Hirotaka
• Conference:
  • 14th World Conference of Transport Research (WCTR 2016)
  • Location: Shanghai , China
  • Date: 2016-7-10 to 2016-7-15
• Publication Date: 2018-2

Language

• English

Media Info

• Media Type: Web
• Features: References; Tables;
• Pagination: pp 58-62
• Serial:
  • Transport Policy
  • Volume: 62
  • Issue Number: 0
  • Publisher: Elsevier
  • ISSN: 0967-070X
  • Serial URL: http://www.elsevier.com/locate/issn/096707X

Subject/Index Terms

• TRT Terms: Bids; Competition; Dynamic models; Franchises
• Uncontrolled Terms: Yardstick competition
• Subject Areas: Economics; Transportation (General);

Filing Info

• Accession Number: 01661107
• Record Type: Publication
• Files: TRIS
• Created Date: Feb 23 2018 4:40PM