This paper reviews the incentive structure of concession contracts in several Latin American transit reforms. It also presents a conceptual analysis of the optimal design of concession contracts. The conceptual discussion and case studies reviewed indicate that payment to operators should be...

<italic>This paper provides a unifying framework to analyze whether a monopoly transit provider will under or over-supply frequency. To this end we couch the problem in term of Spence [(1975). Monopoly, quality and regulation.</italic> The Bell Journal of Economics, 6, <italic>417-429] who analyzed the incentives to...</italic>