Goal achievement with trusting partnerships at the tactical level

Recent Thredbo Conferences have begun to explore the importance of the relationship between public transport service purchaser and provider in the development of successful public transport services. However, practical examples to test the trusting partnership model are rare. Bus service planning and delivery in Melbourne, Australia, has pioneered the trusting partnership approach, from agreement about desirable service standards and requisite operator qualifications (at the Tactical level) to detailed service delivery contracts. New negotiated performance-based metropolitan bus contracts commenced in January 2009, embodying principles discussed in previous Thredbo Conferences. This paper reports on the Tactical planning process that agreed service standards and the subsequent contract negotiation process, reflecting a trusting partnership between purchaser and provider, while remaining transparent and accountable and maintaining performance pressure on the provider. It shows how patronage growth rates have increased dramatically and identifies areas where further enhancements should be explored in the contracting area.     

Random covariance heterogeneity in discrete choice models

In this paper, we extend the standard discrete choice modelling framework by allowing for random variations in the substitution patterns between alternatives across respondents, leading to increased model flexibility. The paper shows how such a Mixed Covariance model can be specified either with purely random variation or with a mixture of random and deterministic variation. Additionally, the model can be based on an underlying GEV or ECL structure. Finally, the model can be specified as a continuous mixture or as a discrete mixture. An application on Stated Preference data for the choice of departure time and travel mode shows that important gains in model performance can be obtained by allowing for random covariance heterogeneity. Furthermore, the approach leads to significant differences in the implied willingness to pay measures, and the substitution patterns between alternatives.