Socially unacceptable criterion used to choose an infra- structure-related concession bidding competition winner

R. A. Martusevich
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R. A. Martusevich: Institute for Business and Market Analysis, Higher School of Economics

Journal of Modern Competition, 2008, issue 4, 38-49

Abstract: Bidding competitions organized to identify the winner that gains the right to conclude a concession agreement are one of the forms of competition for the best market share and are the most important stage of a concession project-related organizational process development. The experience gained in different countries of the world of organizing the concession bidding competitions in various infrastructure-related sectors (power supply, water supply, transportation services, etc.) is large but the experience has shown that the competition result is not always justified as the inadequate criteria are used when choosing the winner. The article author shows the reasons why the state officials choose the maximal concession payment as the only criterion that can identify the best concession competition bidder.

Date: 2008
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