Selecting an optimal contractual payment model for Istanbul's public bus operators using non-linear mathematical programming. (September 2019)

• Record Type: Journal Article
• Authors: Canıtez, Fatih; Çelebi, Dilay; Deveci, Muhammet; Kuvvetli, Yusuf
• Is Part Of: Research in transportation economics. Volume 76(2019)
• Publication Date: 2019-09
• Subjects: Public transport -- Non-linear mathematical programming -- Contracting models -- Net-cost -- Gross-cost -- Performance-based contracts; L11 -- L14 -- L33 -- L92 -- L98 -- R48; Transportation -- Periodicals; 388.05
• DOI: 10.1016/j.retrec.2019.100750
• Languages: English
• ISSNs: 0739-8859

Abstract

Abstract: In this study, an optimum payment model is suggested for Istanbul's public bus transport operators by modelling the expectations of passengers, operators and the transport authority. Their expectations also involve non-linear relationships, hence a non-linear mathematical programming is utilized in the paper. The commercial payment, gross-cost and performance-based gross cost payment models are the alternatives to be considered instead of the net-cost model due to its service quality problems in Istanbul's context. According to the model results, a gross cost payment model is recommended for Istanbul. By offering a consensus-based middle ground between the transport actors, the model provides a way for improvement in public transport service provision especially for developing cities where regulatory and institutional context is hard to change.