LT2: Typology and analysis of business plans and incentives for BRT and u…

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LT2: Typology and analysis of business plans and incentives for BRT and u…

  1. 1. LT2 Typology and analysis of business plans and incentives for BRT and urban mobility systems Patricia Galilea and Marco Batarce Department of Transport Engineering and Logistics Pontificia Universidad Católica de Chile
  2. 2. Motivation Relationship between private operator and public body is not easy since:  It has conflicting goals: achieve social goals vs max profits Contract is a means to establish rules of this relationship and it must reflect the needs of both parties and secure their convergence  Asymmetry of information (principal-agent) Efficient regulatory schemes  Contexts are relevant Thus, partnership’s success is not assured
  3. 3. Objectives How a contract can induce operators to innovate and improve service quality? Incorporate not only the Government-Operator relationship, but include the Operator-Driver relationship Steps:  Literature review on contracts and incentive theory related to public transport systems  Review BRT contracts in different contexts  Collect data on key variables  Model theoretically the firm’s behavior for a given type of contract  Model empirically some cases  Recommendation of best practices on BRT contracting  Educational package for policy makers
  4. 4. LT2 Typology and analysis of business plans and incentives for BRT and urban mobility systems Patricia Galilea and Marco Batarce Department of Transport Engineering and Logistics Pontificia Universidad Católica de Chile

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