Contracted service comprises a significant proportion of total operating expenses in the provision of fixed-route bus transit service in the US. Despite its importance, the literature on the economic effects of transit service contracting has been limited to only a few studies since the...

Past studies of economies of scale in transit have tended to treat the transit industry as a set of similar agencies that have the same cost structure, and have conducted an analysis for the entire range of agency size using a single regression function. This may have caused problems in the...