The likely impacts of target setting and performance rewards in local transport

The research has employed a mixed-methods approach with interviews, questionnaires, the development of a game theoretic representation of the process and a laboratory experiment. The findings have been discussed with practitioners. The research suggests that the presence of performance rewards, in a scheme where authorities believe they have a reasonable chance of being rewarded, leads to authorities setting more ambitious targets. Whilst it is not certain that these targets will be met it appears that the absolute outcomes achieved are likely to be better than they otherwise would have been. Generic conclusions are drawn about the conditions under which target-based performance reward schemes will work best.