Should a conceding authority auction off or negotiate a contract for an exclusive private infrastructure deal? Advocates of negotiation often argue that a formal competition may take too much time, that the costs of preparing bids may be excessive, and that innovation may be discouraged. But...

While the number of private infrastructure projects continues to grow, tales of endless delays and exorbitant development costs still scare both developers and governments. The authors show that these costs are related not to project size but to the characteristics of the policy environment. As...