Work

Highway to sell: How to renew concessions if you want it

Year: 2026

Type: article

Abstract: Motivated by the forthcoming terminations of most highways concessions in France, we propose a versatile model of dynamic regulation and contract renewals that describes a long-term relationship between the public authority and an incumbent operator with private information about its costs that may face potential entrants. We discuss various issues including the nature of discriminatory biases towards entrants, their consequences on investments, the public or private nature of the management of concessions, the role of the operator’s financial constraints, the consequences of allotments. So doing, we isolate a few principles that should guide policy-makers when deciding upon concession renewals.

Source: Economics of Transportation

DOI: 10.1016/j.ecotra.2026.100447

Authors: Philippe Bontems, Marie-Françoise Calmette, David Martimort

Institutions: Institut National de Recherche pour l'Agriculture, l'Alimentation et l'Environnement, Toulouse School of Economics, Université de Toulouse

Language: English

Topic: Transport and Economic Policies

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: hybrid

Estimated APC paid: $2,400