Please use this identifier to cite or link to this item: http://buratest.brunel.ac.uk/handle/2438/3446
Title: The theory of incentives applied to the transport sector
Authors: Iossa, E
Martimort, D
Keywords: Contracting out; public-private partnerships; public-service provision; transport
Issue Date: 2009
Publisher: Brunel University
Citation: Economics and Finance Discussion Paper, Brunel University, 09-13.
Abstract: Building upon Iossa and Martimort (2008), we study the main incentive issues and the form of optimal contracts for Public Private Partnerships (PPPs) in transports. We present a basic model of procurement in a multitask environment in which a risk-averse firm chooses unobservable efforts in infrastructure and service quality. We begin by analyzing the effect on incentives and risk transfer of bundling building and operation into a single contract. We consider the factors that affect the optimal allocation of demand risk and their implications for the choice of contract length. We discuss the dynamics of PPP contracts and how the risk of regulatory opportunism affects contract design and incentives.
URI: http://bura.brunel.ac.uk/handle/2438/3446
Appears in Collections:Economics and Finance
Dept of Economics and Finance Research Papers

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