Auction procedures and competition in public services: The case of urban public transport in France and London
AbstractIn many countries, governments are pushing for the introduction of competition in the organization of public services and more broadly in public procurement. The development of public-private partnerships throughout the world is a good illustration of this trend. In order to foster competition, competitive tendering through the use of auctions is now common. Nevertheless, competition for the field must be organized. Depending on the rules of the game chosen, introducing competition for the field may or may not be successful. In this paper we investigate two alternative models for organizing local public services, namely the French and the London models of urban public transport. Few competitors and collusive behaviours, with increasing costs, characterize the French model, while the London model, as far as we have seen, exhibits better results, by using the transparency of auction procedures and the discretionary power of the regulator as two complementary instruments to foster competition and prevent anti-competitive behaviours.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal Utilities Policy.
Volume (Year): 17 (2009)
Issue (Month): 2 (June)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/30478
Public services Transportation Franchise bidding Public-private partnerships Collusion Corruption Auctions;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Paul Klemperer, 2000.
"What Really Matters in Auction Design,"
Economics Series Working Papers
2000-W26, University of Oxford, Department of Economics.
- Ariane Lambert-Mogiliansky & Konstantin Sonin, 2006.
"Collusive Market Sharing and Corruption in Procurement,"
Journal of Economics & Management Strategy,
Wiley Blackwell, vol. 15(4), pages 883-908, December.
- Ariane Lambert-Mogiliansky & Konstantin Sonin, 2003. "Corruption and Collusion in Procurement Tenders," Working Papers w0036, Center for Economic and Financial Research (CEFIR).
- Ariane Lambert-Mogiliansky & Konstantin Sonin, 2005. "Collusive market-sharing and corruption in procurement," PSE Working Papers halshs-00590773, HAL.
- Holt, Charles A, Jr, 1979. "Uncertainty and the Bidding for Incentive Contracts," American Economic Review, American Economic Association, vol. 69(4), pages 697-705, September.
- Rafael Di Tella & Alberto Ades, 1999. "Rents, Competition, and Corruption," American Economic Review, American Economic Association, vol. 89(4), pages 982-993, September.
- Hong, Han & Shum, Matthew, 2002.
"Increasing Competition and the Winner's Curse: Evidence from Procurement,"
Review of Economic Studies,
Wiley Blackwell, vol. 69(4), pages 871-98, October.
- Han Hong & Matthew Shum, 2002. "Increasing Competition and the Winner's Curse: Evidence from Procurement," Review of Economic Studies, Oxford University Press, vol. 69(4), pages 871-898.
- Han Hong & Matthew Shum, 2001. "Increasing Competition and the Winner's Curse: Evidence from Procurement," Economics Working Paper Archive 447, The Johns Hopkins University,Department of Economics.
- Han Hong, 2000. "Increasing Competition and the Winner's Curse: Evidence from Procurement," Econometric Society World Congress 2000 Contributed Papers 1628, Econometric Society.
- Bliss, Christopher & Di Tella, Rafael, 1997. "Does Competition Kill Corruption?," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 1001-23, October.
- Porter, Robert H & Zona, J Douglas, 1993.
"Detection of Bid Rigging in Procurement Auctions,"
Journal of Political Economy,
University of Chicago Press, vol. 101(3), pages 518-38, June.
- Patrick Bajari & Robert S. McMillan & Steve Tadelis, 2003.
"Auctions Versus Negotiations in Procurement: An Empirical Analysis,"
NBER Working Papers
9757, National Bureau of Economic Research, Inc.
- Steven Tadelis, 2009. "Auctions Versus Negotiations in Procurement: An Empirical Analysis," Journal of Law, Economics and Organization, Oxford University Press, vol. 25(2), pages 372-399, October.
- Patrick Bajari & Robert McMillan & Steven Tadelis, . "Auctions versus Negotiations in Procurement: An Empirical Analysis," Working Papers 02007, Stanford University, Department of Economics.
- J. Luis Guasch, 2004. "Granting and Renegotiating Infrastructure Concessions : Doing it Right," World Bank Publications, The World Bank, number 15024, March.
- Laffont, Jean-Jacques & N'Guessan, Tchetche, 1999. "Competition and corruption in an agency relationship," Journal of Development Economics, Elsevier, vol. 60(2), pages 271-295, December.
- Alejandro M. Manelli & Daniel R. Vincent, 1992.
"Optimal Procurement Mechanisms,"
999, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Roberto Burguet & Yeon-Koo Che, 2004. "Competitive Procurement with Corruption," RAND Journal of Economics, The RAND Corporation, vol. 35(1), pages 50-68, Spring.
- Domberger, S & Meadowcroft, S & Thompson, D, 1987. "The impact of competitive tendering on the costs of hospital domestic services," Fiscal Studies, Institute for Fiscal Studies, vol. 8(4), pages 39-54, November.
- O. Compte & A. Lambert-Mogiliansky & T. Verdier, 2005. "Corruption and Competition in Procurement Auctions," RAND Journal of Economics, The RAND Corporation, vol. 36(1), pages 1-15, Spring.
- Mark Armstrong & David E.M. Sappington, 2006.
"Regulation, Competition and Liberalization,"
Journal of Economic Literature,
American Economic Association, vol. 44(2), pages 325-366, June.
- Bulow, Jeremy & Klemperer, Paul, 1996. "Auctions versus Negotiations," American Economic Review, American Economic Association, vol. 86(1), pages 180-94, March.
- Cripps, Martin & Ireland, Norman, 1994. "The Design of Auctions and Tenders with Quality Thresholds: The Symmetric Case," Economic Journal, Royal Economic Society, vol. 104(423), pages 316-26, March.
- Simon Domberger & Stephen Rimmer, 1994. "Competitive Tendering and Contracting in the Public Sector: A Survey," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 1(3), pages 439-453.
- GAUTIER, Axel & YVRANDE-BILLON, Anne, 2008.
"Contract renewal as an incentive device. An application to the French urban public transport sector,"
CORE Discussion Papers
2008068, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Axel Gautier & Anne Yvrande-Billon, 2013. "Contract Renewal as an Incentive Device. An Application to the French Urban Public Transport Sector," Review of Economics and Institutions, Università di Perugia, vol. 4(1).
- Axel Gautier & Anne Yvrande-Billon, 2008. "Contract Renewal as an Incentive Device. An Application to the French Urban Public Transport Sector," CREPP Working Papers 0805, Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège.
- Augustin, Katrin & Walter, Matthias, 2010. "Operator changes through competitive tendering: Empirical evidence from German local bus transport," Research in Transportation Economics, Elsevier, vol. 29(1), pages 36-44.
- Thomas Greve Author-X-Name-First Thomas & Michael G. pollitt Author-X-Name-First Michael, . "Network Procurement Auctions," Cambridge Working Papers in Economics 1347, Faculty of Economics, University of Cambridge.
- Hunold, Matthias & Wolf, Christoph, 2013. "Competitive procurement design: Evidence from regional passenger railway services in Germany," ZEW Discussion Papers 13-009, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Anna Balsevich & Svetlana Pivovarova & Elena Podkolzina, 2011. "Information Transparency in Public Procurement: How it Works in Russian Regions," HSE Working papers WP BRP 01/EC/2011, National Research University Higher School of Economics.
- Cambini Carlo & Filippini Massimo & Piacenza Massimiliano & Vannoni Davide, 2011. "Corporatization and Firm Performance: Evidence from Publicly-Provided Local Utilities," Review of Law & Economics, De Gruyter, vol. 7(1), pages 191-213, July.
- Balsevich, A. & Pivovarova, S. & Podkolzina, E., 2012. "The Role of Information Transparency in Public Procurement: the Example of Russian Regions," Journal of the New Economic Association, New Economic Association, vol. 15(3), pages 82-112.
- Daniel Albalate & Germà Bel & Joan Calzada, 2010. "Urban transport governance reform in Barcelona," IREA Working Papers 201009, University of Barcelona, Research Institute of Applied Economics, revised Jun 2010.
If references are entirely missing, you can add them using this form.