Title :

Rigidity in public contracts: Implications for renewal dynamics

Author(s) :

Moszoro, Marian [Auteur]
George Mason University [Fairfax]
International Monetary Fund (IMF)
Saussier, Stéphane [Auteur]
LAB IAE Paris - Sorbonne
Beuve, Jean [Auteur]
Lille économie management - UMR 9221 [LEM]

Journal title :

Quarterly Review of Economics and Finance

Pages :

101924

Publisher :

Elsevier

Publication date :

2024-12

ISSN :

1062-9769

English keyword(s) :

Public procurement
Contract rigidity
Renewals
Renegotiations

HAL domain(s) :

Sciences de l'Homme et Société/Gestion et management
Sciences de l'Homme et Société/Economies et finances

English abstract : [en]

We investigate how the rigidity of public contracts influences the frequency of their renewal. Using a dataset of contracts for public–private car parks and employing machine-reading techniques to assess contract rigidity, ...
Show more >We investigate how the rigidity of public contracts influences the frequency of their renewal. Using a dataset of contracts for public–private car parks and employing machine-reading techniques to assess contract rigidity, we find that heightened contract rigidity, particularly in litigation clauses, significantly raises the probability of contract renewal. Our findings indicate that procedural sunk costs and the competitive advantage conferred to incumbents by contract rigidity are key factors contributing to more frequent renewals. This study enhances our comprehension of public contract renewals by emphasizing the significance of political contestability and rigidity, providing valuable insights into optimal strategies for contract renegotiation.Show less >

Language :

Anglais

Peer reviewed article :

Oui

Audience :

Internationale

Popular science :

Non

Collections :

• Lille Économie Management (LEM) - UMR 9221

Source :

Harvested from HAL

Submission date :

2025-01-22T03:12:59Z