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Comparative Analysis of Asset Maintenance Incentives
Two tour companies operate in the same city. Company A owns its fleet of buses. Company B leases its buses on a short-term, daily basis from a large pool of vehicles shared by many different companies. Based on the economic incentives created by these different arrangements, predict and explain the likely differences in the long-term physical condition of the buses used by each company. In your explanation, analyze the motivations of each company regarding vehicle care and maintenance.
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