Abstract
Different mechanisms have been adopted by developed and developing countries over the last decades to provide urban bus services. Although competitive tendering has been considered the standard method to procure urban bus services, it cannot be treated as a ready-made solution. Contracts are incomplete by nature and, after the tender, to avoid ex-post opportunism they must be properly monitored. Additionally, developing countries, in general, have weak regulatory bodies and limited capacity to oversee public contracts. This paper aims to review the literature to gather actions that can increase the competition in public tenders and improve service quality during the life of the contract in developing countries.
Highlights
Public transport is a crucial aspect of the promotion of justice and equity in terms of accessibility in the urban environment
The purpose of this paper is to review the literature to gather strategies that can increase the competition in public tenders and improve service quality during the life of public bus contracts
An additional objective of this study is to find gaps in the literature that can be tapped in future research regarding urban bus contracts and public tenders
Summary
Public transport is a crucial aspect of the promotion of justice and equity in terms of accessibility in the urban environment. The purpose of this paper is to review the literature (concerning the developed and developing countries) to gather strategies that can increase the competition in public tenders and improve service quality during the life of public bus contracts. This paper aims to answer one question: What mechanisms can be used in public tenders for urban bus provision to enhance competition for the market in developing countries?. The method used to select the papers was snowballing, and we did not specify a time frame, since experiences from the past decades can enrich the analysis and may be overhauled to match the present needs After this brief introduction, the section sheds light on the market failures that may occur in the bus market (especially when it is deregulated).
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