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. 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. 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. 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