Challenging Market Designs and Procurement Policy Restructuring: School Transportation for Disadvantaged Students
California Institute of Technology, Social Science Working Paper 1448, October 2019
38 Pages Posted: 18 Oct 2019
Date Written: October 9, 2019
The paper reports on the design, experimental testing, field implementation and performance of market policy replacements of an administrative procedures for procuring school transportation for disadvantaged children. The project involves route design, special auction design and implementation. The new process produced improved quality of transportation services for the same cost. One-way travel time per child was reduced from 90 minutes on the bus to 64 minutes, a 53% reduction. Robustness analysis demonstrates a close relationship between experimental performance and actual field performance with the special auction (with only three bidders) performing closely to the predictions of economic theory.
Keywords: procurement, market design, experiments, school transportation, route design, auction
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