A growing number of governments are persuading private firms to build and operate infrastructure projects for them. Since the initial contract between the government and firm is based on forecasted demand, the government can renegotiate to adjust it after demand is realized. We use stylized...

Problem Definition: Public-private partnership (PPP) is a form of government procurement where a private entity (firm) provides upfront funding to construct a public project. After the project is completed, the firm collects payments from end consumers to recoup the construction cost and...