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Renegotiations and Renewals of Public Contracts

Author

Listed:
  • Jean Beuve

    (UP1 UFR06 - Université Paris 1 Panthéon-Sorbonne - UFR Gestion & économie d'entreprise - UP1 - Université Paris 1 Panthéon-Sorbonne)

  • Stéphane S. Saussier

    (IAE Paris - Sorbonne Business School)

Abstract

This paper examines the impact of renegotiations on contract renewals. Using an original dataset of procurement contracts in the French car park sector, we show that there exists an optimal level of renegotiations that positively affects the probability of renewing a contract with the same partner. This result holds only when public authorities have discretionary power during the awarding procedure. Such findings suggest that what is usually interpreted as a sign of weakness – frequent renegotiations – might well be good news that indicates that the contracting parties can make contracts adaptable over time.

Suggested Citation

  • Jean Beuve & Stéphane S. Saussier, 2021. "Renegotiations and Renewals of Public Contracts," Post-Print hal-03576157, HAL.
    • Handle: RePEc:hal:journl:hal-03576157
    DOI: 10.1007/s11151-021-09819-w
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    Cited by:

    1. Antonio Estache & Renaud Foucart & Tomas Serebrisky, 2022. "When can lotteries improve public procurement processes?," Working Papers 359001116, Lancaster University Management School, Economics Department.
    2. Antonio Estache & Renaud Foucart & Tomas Serebrisky, 2024. "Can Lotteries help fix Procurement Failures? A Review of Theory and Evidence," Working Papers ECARES 2024-18, ULB -- Universite Libre de Bruxelles.
    3. Jean Beuve & Marian W Moszoro & Pablo T Spiller, 2023. "Doing It by the Book: Political Contestability and Public Contract Renegotiations," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 39(1), pages 281-308.
    4. Bonifaz, José L. & Saavedra, Eduardo H., 2023. "Aggressive bidding and the renegotiation of concession contracts: Empirical evidence from Peru," Utilities Policy, Elsevier, vol. 85(C).
    5. Hailemariam, Abebe & Ivanovski, Kris & Dzhumashev, Ratbek, 2022. "Does R&D investment in renewable energy technologies reduce greenhouse gas emissions?," Applied Energy, Elsevier, vol. 327(C).
    6. Philippe Bontems & Marie-Françoise Calmette & David Martimort, 2025. "Highway to Sell," Working Papers hal-05143577, HAL.
    7. Moszoro, Marian W. & Saussier, Stéphane & Beuve, Jean, 2024. "Rigidity in public contracts: Implications for renewal dynamics," The Quarterly Review of Economics and Finance, Elsevier, vol. 98(C).

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