Opportunistic Behavior and Legal Disputes in the Chilean Electricity Sector
In this paper I analyze post-contractual disputes in the newly privatized electricity sector in Chile. I discuss the presumption that opportunistic behavior and disputes arise due to inadequate market design, ambiguous regulation, and institutional weaknesses. I also assess the presumption that a large number of legal (public) disputes are inhibited by the nonexistence of institutions able to verify and enforce contracts. An in-depth analysis of 6 cases of open con‡ict provides support to such presumptions and highlights the crucial role of an adequate (preprivatization) market design. In addition, it concludes that the reduced number of open con‡icts observed in Chile is probably due to institutional weaknesses, which induces the parties to use private con‡ict resolution mechanisms.
|Date of creation:|
|Date of revision:|
|Contact details of provider:|| Postal: Erasmo Escala 1835, 6500620 Santiago|
Phone: (562) 692-0265
Fax: (562) 692-0303
Web page: http://www.economia.uahurtado.cl/
More information through EDIRC
|Order Information:|| Email: |
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.:
- Aghion, Philippe & Dewatripont, Mathias & Rey, Patrick, 1994.
"Renegotiation Design with Unverifiable Information,"
12375014, Harvard University Department of Economics.
- Aghion, Philippe & Dewatripont, Mathias & Rey, Patrick, 1994. "Renegotiation Design with Unverifiable Information," Econometrica, Econometric Society, vol. 62(2), pages 257-82, March.
- Mathias Dewatripont & Philippe Aghion & Patrick Rey, 1994. "Renegotiation design with unverifiable information," ULB Institutional Repository 2013/9591, ULB -- Universite Libre de Bruxelles.
- Federico Basañes & Eduardo Saavedra & Raimundo Soto, . "Post-Privatization Renegotiations and Disputes in Chile," ILADES-Georgetown University Working Papers inv117, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines.
- Laffont, Jean-Jacques & Tirole, Jean, 1991.
"Privatization and Incentives,"
Journal of Law, Economics and Organization,
Oxford University Press, vol. 7(0), pages 84-105, Special I.
- John Vickers & George Yarrow, 1988. "Privatization: An Economic Analysis," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262720116.
- Richard J. Gilbert and David M. Newbery., 1988.
Economics Working Papers
8879, University of California at Berkeley.
- Gilbert, Richard & Newbery, David M G, 1988. "Regulation Games," CEPR Discussion Papers 267, C.E.P.R. Discussion Papers.
- Gilbert, Richard J. & Newbery, David M., 1988. "Regulation Games," Department of Economics, Working Paper Series qt50s6h8c6, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Kathryn E. Spier, 1992. "The Dynamics of Pretrial Negotiation," Review of Economic Studies, Oxford University Press, vol. 59(1), pages 93-108.
- Schmidt, Klaus M., 1996.
"Incomplete contracts and privatization,"
European Economic Review,
Elsevier, vol. 40(3-5), pages 569-579, April.
- Sanford J. Grossman & Oliver D. Hart, 1980. "Takeover Bids, the Free-Rider Problem, and the Theory of the Corporation," Bell Journal of Economics, The RAND Corporation, vol. 11(1), pages 42-64, Spring.
- Kyle Bagwell, 1992.
"Commitment and Observability in Games,"
1014, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Hardman Moore, John & Hart, Oliver, 1985.
"Incomplete Contracts and Renegotiation,"
CEPR Discussion Papers
60, C.E.P.R. Discussion Papers.
- Eduardo Saavedra, . "Alternative Institutional Arrangements in Network Utilities: An Incomplete Contracting Approach," ILADES-Georgetown University Working Papers inv116, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines.
- Eric Maskin & Jean Tirole, 1997. "Unforseen Contingencies, Property Rights, and Incomplete Contracts," Harvard Institute of Economic Research Working Papers 1796, Harvard - Institute of Economic Research.
- Shapiro, C. & Willing, D.R., 1990. "Economic Rationales For The Scope Of Privatization," Papers 41, Princeton, Woodrow Wilson School - Discussion Paper.
- Janusz Ordover & Russell Pittman & Paul Clyde, 2001.
"Competition Policy for Natural Monopolies in a Developing Market Economy,"
- Janusz A. Ordover & Russell W. Pittman & Paul Clyde, 1994. "Competition policy for natural monopolies in a developing market economy 1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 2(3), pages 317-343, 09.
- Vickers, John, 1996. "Market Power and Inefficiency: A Contracts Perspective," Oxford Review of Economic Policy, Oxford University Press, vol. 12(4), pages 11-26, Winter.
- Gal-Or, Esther, 1985. "First Mover and Second Mover Advantages," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(3), pages 649-53, October.
- Mark Armstrong & Simon Cowan & John Vickers, 1994. "Regulatory Reform: Economic Analysis and British Experience," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262510790.
When requesting a correction, please mention this item's handle: RePEc:ila:ilades:inv130. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marcela Perticara)
If references are entirely missing, you can add them using this form.