Aggressive bidding and the renegotiation of concession contracts: Empirical evidence from Peru*

0Citations
Citations of this article
4Readers
Mendeley users who have this article in their library.
Get full text

Abstract

This paper confirms a positive relationship between the aggressiveness of bids and the probability of renegotiating concession contracts. We use a database of 113 concessions awarded in Peru, finding that a 1% increase in bidding aggressiveness increases the probability of contract renegotiation by 2.4%–3%. This impact is higher for the transportation sector. Our results are robust to several econometric specifications. These results confirm the hypothesis that bidders will submit aggressive bids to renegotiate contract terms once the government and concessionaire are tied, and competition is no longer possible.

Cite

CITATION STYLE

APA

Bonifaz, J. L., & Saavedra, E. H. (2023). Aggressive bidding and the renegotiation of concession contracts: Empirical evidence from Peru*. Utilities Policy, 85. https://doi.org/10.1016/j.jup.2023.101687

Register to see more suggestions

Mendeley helps you to discover research relevant for your work.

Already have an account?

Save time finding and organizing research with Mendeley

Sign up for free