An efficiency analysis of public vs. private bus transportation enterprises

Recently, the inefficiency of public bus transportation enterprises is pointed out in contrast to those in the private sectors, although they have another function as public services. This paper will analyze such a managerial issue by using data envelopment analysis, partly incorporating the notion of public convenience into the model. The conclusions include: (a) public transportation in urban areas should be placed under private management, while (b) those in rural areas should be managed as public organizations.