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AUCTIONS, EX POST COMPETITION AND PRICES: THE EFFICIENCY OF PUBLIC-PRIVATE PARTNERSHIPS *

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Author Info
Eshien Chong
Freddy Huet
Stéphane Saussier

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Abstract

Using an original database concerning 1102 French local public authorities in 2001, we explore the relationships between prices charged by private operators in water contracts and ex post competition. We show that prices charged in contracts in which operators are in a monopoly situation throughout the duration of the contract, are not affected by a 'competition effect' between private operators. However, a competition effect between private operators and public management appears to be crucial in explaining prices combined with a 'termination effect', reflecting the fact that the contract is close to being renewed, and hence re-auctioned. Copyright 2006 The Authors Journal compilation © CIRIEC 2006.

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Article provided by Blackwell Publishing in its journal Annals of Public and Cooperative Economics.

Volume (Year): 77 (2006)
Issue (Month): 4 (December)
Pages: 521-554
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Handle: RePEc:bla:annpce:v:77:y:2006:i:4:p:521-554

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