BIDDING FOR TENDERED BUS ROUTES IN LONDON

Individual bids made for cost contracts in London Regional Transport bus routes between 1985 and 1988 are analysed, for three purposes: to test hypotheses about bidding under competition; to examine bid tactics when a dominant incumbent, London Buses Ltd, was exposed to private bids; and to devise cost estimates for different types of bus operations. With individual route bids, while some expected features of bidding in competitive equilibrium are found, the bids more plausibly reflect the differential rents to factor supplies in disequilibrium. London Buses Ltd successfully deployed superior ability to combine bids for groups of routes when tendered together, discouraging the tenderer from pursuing this tactic. Costs for different types of operation, derived from the statistical analysis of individual routes, are confirmed by inferences from grouped bids. This paper forms part of a special issue of the journal Transportation Planning and Technology, entitled "Competition ownership of bus and coach services", edited by David A Hensher. The special issue carries a selection of 24 papers and workshop reports presented at the international conference held in Thredbo, New South Wales, Australia, from 1st-4th May 1989. For the covering abstract of the conference see IRRD 837493. (Author/TRRL)

Language

  • English

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00623872
  • Record Type: Publication
  • Source Agency: Transport and Road Research Laboratory (TRRL)
  • Files: ITRD, TRIS
  • Created Date: Jul 31 1992 12:00AM