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| Dosi, Cesare; Moretto, Michele. |
| We study the competition to acquire the exclusive right to operate an infrastructure service, by comparing two different specifications for the financial proposals - "lowest price to consumers" vs "highest concession fee", and two alternative contractual arrangements: a contract which imposes the obligation to immediately undertake the investment required to operate the concessioned service and a contract which simply assigns to the winning bidder the right to supply the market at a date of her choosing. By comparing the returns of these alternative award criteria and concessioning conditions, we show that concessioning without imposing rollout time limits may or may not provide a higher expected social value, depending on the bidding rule used to allocate... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Concessions; Auctions; Award criteria; Service Rollout Time limits; Public Economics; L51; D44; D92. |
| Ano: 2009 |
URL: http://purl.umn.edu/50409 |
