Regulation issues in the Italian local transport system: aligning transactions and governance structures

This paper refers to the concept of public governance in the light of Transaction Cost Economics (TCE). While TCE is well developed and widely applied in the private sector, only a few studies have adopted such framework to investigate the provision of public services. We aim at pointing out the coherence between peculiar typologies of transactions and a given set of governance structures, within Local Public Transport systems. The core of the analysis is the alignment between characteristics of transactions and governance structures. The empirical section addresses these issues referring to three case studies, pointing out an articulated organizational configuration in terms of actors involved and governance structures adopted. The analysis shows an alignment between the choices underlying the design of the local transport system and the outcomes expected in terms of TCE.