The design and regulation of highway tariffs may be quite different depending upon the objectives pursued by the State. If the aim is to protect consumers, tariffs should be tied to the concessionaire’s profit and revised frequently. Instead, fixing the tariff in advance for the entire period...

Control over a state-owned enterprise (SOE) offers politicians various benefits (rent from control). If politicians decide to privatize a SOE, they loose such rent. To "explain" privatizations one should thus consider under which conditions politicians may obtain from privatization benefits...