On the design of optimal auctions for road concessions: Firm selection, government payments, toll and capacity schedules with imperfect information

Hang Shu and Pablo L. Durango-Cohen

Transportation Research Part B: Methodological, 2021, vol. 146, issue C, 210-236

Abstract: We consider firms with privately-known production efficiencies, captured in their cost structure, bidding for a road concession agreement with a government seeking to maximize the expected public welfare generated by the project. The setting is motivated by the increasing trend in road privatization around the world, and the need to design auctions leading to efficient outcomes: firm selection, government payments, toll and capacity schedules, which determine public welfare and firm profits.

Keywords: Public-private partnerships in transportation (PPPs; P3s); Concession agreements; Capacity and tolling; Auctions; Mechanism design (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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DOI: 10.1016/j.trb.2021.03.001

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