Public transport provision requires substantial organisational efforts, careful planning, in some cases contributions from the public purse, and coordination between millions of passengers and staff members in large systems. Efficient resource allocation is critical in its daily operation, and...

This paper models inter-regional public transport provision with federal and local levels of government. Such services can in principle be operated by (i) the higher-level government, (ii) one of the local governments, or (iii) a private operator. We derive optimal pricing and capacity...