scholarly journals The Cost of Contract Renegotiation: Evidence from the Local Public Sector

2013 ◽  
Vol 103 (6) ◽  
pp. 2352-2383 ◽  
Author(s):  
Philippe Gagnepain ◽  
Marc Ivaldi ◽  
David Martimort
Keyword(s):  
Public Sector ◽  
Efficient Solution ◽  
Urban Transport ◽  
Welfare Gains ◽  
Agent Model ◽  
Transport Services ◽  
Fixed Price ◽  
Open Issue ◽  
Principal Agent Model ◽  
The Cost

Contract theory claims that renegotiation prevents attainment of the efficient solution that could be obtained under full commitment. Assessing the cost of renegotiation remains an open issue from an empirical viewpoint. We fit a structural principal-agent model with renegotiation on a set of contracts for urban transport services. The model captures two important features of the industry as only two types of contracts are used (fixed price and cost-plus) and subsidies are greater following a cost-plus contract than following a fixed-price one. We conclude that the welfare gains from improving commitment would be significant but would accrue mostly to operators. (JEL D82, D86, L51, L92, R42, R48)

scholarly journals Sustainability of Public Services: Is Outsourcing the Answer?

2019 ◽  
Vol 11 (24) ◽  
pp. 7231 ◽  
Author(s):  
Antonio Sánchez Soliño
Keyword(s):  
Public Service ◽  
Public Services ◽  
Cost Savings ◽  
Political Agenda ◽  
Agent Model ◽  
The Public ◽  
Principal Agent Model ◽  
The Cost

The outsourcing of public services has acquired a prominent position in the political agenda of many countries in recent decades. This paper contributes an analysis of the outsourcing of a public service under a theoretical framework based on a multitask principal-agent model. For the management of the service, a contract is assumed that includes certain incentives to the contractor linked to the outcomes in two types of activities: the first related to cost saving, and the second related to the improvement of the quality of the service. The main results of the paper show, in the first place, the conditions under which the outsourcing of a public service is economically unfeasible. Additionally, the paper shows that, under perfect information conditions, the optimal incentives include the contractor retaining all the cost savings. On the contrary, under conditions of asymmetric information on the quality of the service, the contract should stipulate a certain distribution of the cost savings between the public authority and the contractor. More in general, the formalization of the model presented in this work can contribute to a better understanding of the role of the contracts, and therefore to their improvement.

Urban Transport

2018 ◽  
Author(s):  
José van
Keyword(s):  
Urban Areas ◽  
Urban Transport ◽  
Transport Sector ◽  
Public And Private ◽  
Transport Services ◽  
Ride Sharing ◽  
The World ◽  
Private And Public ◽  
Selection Mechanisms

Platformization affects the entire urban transport sector, effectively blurring the division between private and public transport modalities; existing public–private arrangements have started to shift as a result. This chapter analyzes and discusses the emergence of a platform ecology for urban transport, focusing on two central public values: the quality of urban transport and the organization of labor and workers’ rights. Using the prism of platform mechanisms, it analyzes how the sector of urban transport is changing societal organization in various urban areas across the world. Datafication has allowed numerous new actors to offer their bike-, car-, or ride-sharing services online; selection mechanisms help match old and new complementors with passengers. Similarly, new connective platforms are emerging, most prominently transport network companies such as Uber and Lyft that offer public and private transport options, as well as new platforms offering integrated transport services, often referred to as “mobility as a service.”

scholarly journals Building a Model of Integration of Urban Sharing and Public Transport Services

2021 ◽  
Vol 13 (6) ◽  
pp. 3086
Author(s):  
Marcin Jacek Kłos ◽  
Grzegorz Sierpiński
Keyword(s):  
Decision Making ◽  
Public Transport ◽  
Urban Transport ◽  
Extensive Literature ◽  
Transport Services ◽  
Harmful Emissions ◽  
Specific Factors ◽  
The Given ◽  
Public Transport Services ◽  
Potential Area

The intense growth of cities affects their inhabitants to a considerable extent. The issues facing the traveling population include congestion and growing harmful emissions. Urban transport requires changes towards eco-friendly solutions. However, even though new forms of traveling (sharing services) are being implemented, their integration with public transport remains problematic. On account of the large number of available services combined with the absence of their integration, city inhabitants are faced with the dilemma of choosing between one or several transport modes which would enable them to make the given trip. The main goal of this article is to propose a model for integration of different transport services which could support those who intend to travel in the decision-making process. Therefore, the parameters of a model of urban sharing services were identified and classified. The parameters discussed in the paper with reference to an extensive literature review describe how individual sharing services are functioning. What has also been identified is the location-specific factors as well as those related to the potential area of operation which affect the integration with public transport. In order to take all the relevant parameters into account and find a solution to the problem at hand, a multi-criteria decision-making approach has been proposed. To this end, scores and weights determining their impact on the model have been established. For purposes of the solution in question, the relevant calculations were conducted by referring to an actual need to travel between selected locations.

Why Were Workers Whipped? Pain in a Principal-Agent Model

1990 ◽  
Vol 100 (403) ◽  
pp. 1109 ◽  
Author(s):  
Michael Suk-Young Chwe
Keyword(s):  
Principal Agent ◽  
Agent Model ◽  
Principal Agent Model

Interactive Evolution and Coordination of Urban Transport

2017 ◽  
Vol 42 (3) ◽  
pp. 20-24
Author(s):  
Yufang Jin ◽  
Xiangjian Zhang
Keyword(s):  
Urban System ◽  
Integrated System ◽  
Urban Transport ◽  
Transportation Infrastructure ◽  
Coordinated Development ◽  
Traffic Jam ◽  
Planning Strategy ◽  
Transport Services ◽  
The City ◽  
Economic Size

With the continuous expansion of urban scale, blindly increasing or controlling transportation infrastructure possibly creates a short board in an urban system. In this study, a macro traffic integrated system was constructed according to a city's economic size distribution and transportation infrastructure. The planning strategy of traffic, industry, space interaction and coordinated development was put forward. Through theoretical model, the evolution mechanism between transportation infrastructure and economic scale distribution was revealed. Starting from the center of the city and inter city level, China's new urbanization strategy was implemented, and a comprehensive transportation system model was built. The traffic planning in Singapore was taken as an example, and the solution to traffic problems such as congestion, traffic jam, and distance was obtained. Practice has proved that the rational and effective urban transportation infrastructure construction can effectively promote the coordinated development of economy and resources, and comprehensively enhance the level of integrated transport services.

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