American Economic Review, Papers and Proceeding. Vol. 87, No. 2, pp. 68 - 72, Mayo, 1997
es_ES
Identifier
dc.identifier.issn
0002-8282
Identifier
dc.identifier.uri
https://repositorio.uchile.cl/handle/2250/151098
Abstract
dc.description.abstract
We build a conceptual framework to analyze the virtues and limitations of alternative mechanisms that can be used to auction a highway. We argue that current mechanisms, which fix the term of the franchise, create unnecesary risk and facilitate post-contract opportunism by the regulator and the franchise-holder. We propose a new mechanism that allocates the franchise to the firm asking the least present value of toll revenue. We argue that this mechanisms is clearly superior to those currently in use.