1 Behavioural Changes in the Public Transport Organisations: Learning and Innovative Capabilities in the Tendering Process Sumet Ongkittikul a* , Harry Geerlings b a Thailand Development Research Institute 565 Soi Ramkhamhaeng 39, Ramkhamhaeng Road, Wangthonlang District, Bangkok 10310 Thailand b Department of Public Administration/ PhD School TRAIL Erasmus University Rotterdam P.O. Box 1738 3000 DR Rotterdam The Netherlands Email: sumet@tdri.or.th (S. Ongkittikul); geerlings@fsw.eur.nl (H. Geerlings) * Corresponding author. Tel: +66-2718-5460 Ext. 302, Fax: +66-2718-5461 Abstract This article aims to explain the process of organisational changes in the public transport with respect to the regulatory reform in the sector. Regulatory reform has a profound effect on both institutional and organisational aspects of public transport. This article examines three concepts that are necessary for the analytical framework to have a better understanding of this process of change namely the theory of evolutionary economics, the bounded rationality or problem-solving approach, and the transaction cost economics. From these concepts, this article reveals three observations of the organisational response to