Showing 1 - 10 of 130
Regulating seaports is difficult in general, even more so for the weak regulatory institutions common in developing countries. For this reason some countries have awarded these facilities via Demsetz auctions, to the port operator that bids the lowest cargo-handling fee. A major concern with...
Persistent link: https://www.econbiz.de/10010369132
It has become increasingly common to allocate highway franchises to the bidder that offers to charge the lowest toll. Often, building a highway increases the value of land held by a small group of developers, an effect that is more pronounced with lower tolls. We study the welfare implications...
Persistent link: https://www.econbiz.de/10010369177
In many circumstances, a principal, who wants prices to be as low as possible, must contract with agents who would like to charge the monopoly price. This paper compares a Demsetz auction, which awards an exclusive contract to the agent bidding the lowest price (competition for the field) with...
Persistent link: https://www.econbiz.de/10010369246
Persistent link: https://www.econbiz.de/10011696875
Persistent link: https://www.econbiz.de/10000673945
Persistent link: https://www.econbiz.de/10003354801
Persistent link: https://www.econbiz.de/10003358312
Infrastructure concessions are frequently renegotiated after investments are sunk, resulting in better contractual terms for the franchise holders. This paper offers a political economy explanation for renegotiations that occur with no apparent holdup. We argue that they are used by political...
Persistent link: https://www.econbiz.de/10003810309
Public-private partnerships (PPPs) cannot be justified because they free public funds. When PPPs are justified on efficiency grounds, the contract that optimally balances demand risk, user-fee distortions and the opportunity cost of public funds, features a minimum revenue guarantee and a...
Persistent link: https://www.econbiz.de/10003810983
Persistent link: https://www.econbiz.de/10003468459