The industrial organization of different transport firms, by influencing driver behavior, plays an important role in determining how well transit systems function. Three organizational forms are defined by the type of driver contract: fixed-wage contract, lease-hold contract, and share contract. Systematic differences in the organization of transit systems across regions and countries are discussed and illustrated in the institutional context of para-transit operations in Hong Kong and the Philippines. Directions for future analysis of transport system efficiency set out.
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