Journal of law, economics and organization, 2015, Vol. 31, No. 1, pp. 3-39Williamson's 1976 study of natural-monopoly franchise bidding launched extensive debate concerning the degree to which transaction-cost problems afflict government franchising. We propose that municipalities vary in ability to discipline franchisees, and that this heterogeneous ability affects franchise renewal patterns and the quasi-rents that franchisees extract. We study provision of municipal water services in France, a setting characterized by both direct public provision and franchised private providers. We find that small municipalities pay a significant price premium for franchisee-provided water when compared with publicly provided water; in contrast, large municipalities do not pay a premium on average. Further, large municipalities are less likely to renew an incumbent franchisee that charges an “excessive” price, while small municipalities’ renewal patterns are not influenced by franchisees’ excessive pricing. We interpret the results as evidence that although large municipalities can discipline franchisees and thus prevent extraction of quasi-rents, small municipalities are less able to do so due to weaker outside options.
Since October 2022, Russia’s escalated attacks on Ukraine’s energy infrastructure have caused widespread damage, severely impacting energy security and economic stability. Despite these challenges, Ukraine has demonstrated remarkable resilience, restoring [...]
The European Union is strongly urbanised, with 432 urban nodes identified. This vast array of urban hubs has a significant economic and geographical value. Urban nodes are critical to the [...]
Reducing carbon emission in the wastewater treatment sector requires both lower energy consumption and a transition towards renewable energy sources. Utilizing the embedded energy in wastewater, which has been traditionally [...]
In this report, we focus on the fundamentals of energy and climate policy as reformulated in the EU Green Deal. The 2024 edition of this report includes updates following the [...]
The European Commission’s Communication directed to consumers regarding the Green Transition does not emphasise their shared responsibility. Instead, the Commission puts the emphasis on empowering consumers to make green choices. [...]
This article provides an overview of the most relevant cases decided by the Court of Justice of the European Union concerning contract law. The present issue covers the period between [...]
Join our community
To meet, discuss and learn in the channel that suits you best.
Read it on Cadmus
