We provide a general framework in which to determine the optimal penalty fee inducing the contractor to respect the contracted delivery date in public procurement contracts (PPCs). We do this by developing a real option model that enables us to investigate the contractor’s value of investment...

L’acqua è un bene pubblico essenziale in grado di generare una pluralità di domande spesso in concorrenza tra loro. Sebbene l’obiettivo di assicurare un accesso alla risorsa non subordinato alla “ability to pay” rimanga uno dei principi cardine dell’offerta, la riforma italiana del...

To avoid the extremely high profit levels found in recent experiences with price cap regulation, some regulators have applied a profit-sharing (PS) rule that revises prices to the benefit of consumers. This paper investigates the conditions under which a regulator can implement such a PS scheme,...