DTC versus DIMTS bus operators: efficiency comparison
Student name: Ms Deepshikha
Guide: Mr Soumendu Sarkar
Year of completion: 2012
Host Organisation: TERI University
Abstract: This paper compares the compensation schemes offered to the conductors by the two
major bus operators in Delhi- DTC and DIMTS. The results from the interview of bus
conductors of DTC and DIMTS are used to establish the presence of moral hazard. Using
Hart and Holmstrom‟s (1987) non-linear wage model, the optimal wage that should be
offered is found in case of unobservable effort to eliminate the problem of moral hazard.
It is found that the wage scheme offered by DIMTS is more efficient than that of DTC.
