The Dark and Bright Sides of Renegotiation: An Application to Transport Concession Contracts
Julie de Brux (Chaire EPPP & Vinci)
Abstract: Renegotiations of public-private partnerships have recently been the subject of much attention. Economists regularly analyse them through the lens of ‘hold up’ theories. According to these models, renegotiations are a problem to be avoided: renegotiations become opportunistic because agents are self-interested, and they use renegotiation to seek rents.