Renegotiation without holdup : anticipating spending and infrastructure concessions

@inproceedings{Engel2006RenegotiationWH,
  title={Renegotiation without holdup : anticipating spending and infrastructure concessions},
  author={Eduardo M. R. A. Engel},
  year={2006}
}
Infrastructure concessions are frequently renegotiated after investments are sunk, resulting in better contractual terms for the franchise holders. This paper offers a political economy explanation for renegotiations that occur with no apparent holdup. We argue that they are used by political incumbents to anticipate infrastructure spending and thereby… CONTINUE READING