The winners of auctions for pubic-private partnership contracts, especially for major infrastructure projects such as highways, often enter financial distress, requiring the concession to be reallocated or renegotiated. We build a simple model to identify the causes and consequences of such...

This paper models a Public-Private Partnership (PPP) to construct a highway. It captures some of the key features of the Transmission Gully PPP. The winner of the tender recovers its costs (including capital costs) via an availability payment rather than toll revenue. While the availability...

We examine a dynamic model of English auctions with independent private values. There is a single object for sale and it is not possible for the seller, who has a value of zero for the object, to commit not to sell in the future if a sale is not accomplished today. The seller may be able to...