ISSN: 1648 - 4460

International Journal of Scholarly Papers


Transformations  in
Business & Economics

Transformations in
Business & Economics

  • © Vilnius University, 2002-2009
  • © Brno University of Technology, 2002-2009
  • © University of Latvia, 2002-2009
Competition and Cooperation in Local Public Transport: Realistic Scenario or just a Fantasy?
Mirco Groß

ABSTRACT. For decades, local public transport (LPT) has been losing its market share in intermodal competition. For this reason, and given its particular economic and ecological significance, action needs to be taken to counter this trend. In this connection, above all, two goals which should be aspired to will be outlined in this paper: the coordination of the range of services offered as a result of local transport companies working together to enhance the attractiveness of LPT and the implementation of competition in local public transport. This raises the question of whether these two goals can be achieved complementary given the conditions that exist in LPT or whether competition and cooperation among the transport companies do not instead cancel each other out. Bearing this issue in mind, this paper will analyse the two organisational forms applied in practice in LPT: the “3-level model with tendering competition” and the “deregulated market”. In this context, focus will be given to public road passenger transport. Analysis has shown that fully deregulating the local transport markets would further weaken LPT. In contrast, the “3-level model with tendering competition” could prove to be a suitable organisational model for LPT if the public transport authorities observe certain criteria when implementing this model.

KEYWORDS: local public transport, deregulation, competition, cooperation, social dilemma.

JEL classification: D43, D52.

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