How do driver compensation schemes affect bus system performance?: a comparison between fixed wage and "guerra por el boleto" in Santiago, Chile.

Two systems of bus driver compensation exist in Santiago, Chile. The majority of drivers are paid per passenger transported, which leads to drivers trying to maximize the number of passengers each one conveys. Some of these effects are beneficial, such as a more active effort to minimize the problem of bus bunching, while others, such as aggressive driving, can be harmful. Drivers are said to "race" and the term "War for the Fare" is commonly used. Drivers also pay freelance workers called "sapos" to provide spacing information. Similar phenomena occur in other Latin American capitals.The other system, a fixed wage, is used by 2 companies holding recently awarded concessions for routes feeding metro stations.This paper discusses, quantitatively and qualitatively, the effects of these two compensation systems on accidents, quality of service, attitudes of both users and drivers, and average waiting times for passengers.