Bidding for Concessions—The Impact of Contract Design
نویسنده
چکیده
The definition of what is being auctioned should cover all the specifications and incentives that govern the concession, whether they are included in the concession contract or in laws, regulations, or elsewhere. Where concessions are new, concession contracts may run to hundreds of pages and several volumes, as in the case of the Buenos Aires water concession. In France, by contrast, a long tradition with concessions has led to short documents that set concession-specific terms. Many other rules governing concessions are found in more general laws or the precedents developed by more than a hundred years of relevant jurisprudence.
منابع مشابه
Designing Auctions for Concessions— Guessing the Right Value to Bid and the Winner’s Curse
Once a government has decided to award a concession by auction, it needs to decide what kind of auction to use—whether a first-price or second-price auction, whether sealed or open bids, and whether sequential or simultaneous bids for multiple items. For concessions the standard is a first-price sealed bid auction in which bidders submit sealed envelopes containing their offer and the highest o...
متن کاملPublic-Private Partnership Contracts: A Tale of Two Cities with Different Contractual Arrangements
This paper analyses regulation by contract in public-private partnerships (PPPs) for infrastructure services. Although the benefits of competition for the market and subsequent regulatory contracts are recognised, the literature also identifies contract design failures. When considering these limitations, it is useful to distinguish between contracts associated with purely contractual PPPs (con...
متن کاملAn Empirical Analysis of the Impact of Hedge Contracts on Bidding Behavior in a Competitive
A major concern in the design of wholesale electricity markets is the potential for the exercise of market power by generating unit owners. To better understand the determinants of generating unit owner market power and how it is exercised, this paper derives a model of bidding behavior in a competitive electricity market which incorporates various sources of uncertainty and the impact of the e...
متن کاملInfrastructure Concessions — To Auction or Not to Auction ?
It is true, of course, that immediately awarding contracts rather than going through a bidding process can cut implementation times. Some of the early fast-track power projects in the Philippines were completed in less than a year. The costs were high—more than 13 cents a kilowatthour (kwh), compared with 5 to 7 cents for later plants that were competitively bid. But the costs were much lower t...
متن کاملImpact of Participants’ Market Power and Transmission Constraints on GenCos’ Nash Equilibrium Point
Unlike perfect competitive markets, in oligopoly electricity markets due to strategic producers and transmission constraints GenCos may increase their own profit through strategic biddings. This paper investigates the problem of developing optimal bidding strategies of GenCos considering participants’ market power and transmission constraints. The problem is modeled as a bi-level optimizati...
متن کامل