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Contract Renewal in Urban Water Services, Incumbent Advantage, and Market Concentration

Albalate, D; Bel, G; González-Gómez, F; Picazo-Tadeo, AJ; (2020) Contract Renewal in Urban Water Services, Incumbent Advantage, and Market Concentration. Public Administration Review 10.1111/puar.13282.

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Abstract

Contract renewal with the incumbent is common practice in the contracting-out of public services. It could, however, affect competition by reinforcing trends towards market concentration. This article contributes empirical evidence on the determinants of the result of public tenders for the renewal of private provision of urban water services. A dataset with information on 215 public tenders held in Spain between 2008 and 2019 is employed. The methodology is based on logistic regression techniques. The findings indicate that incumbent size does not play a role in the probability of alternation between service providers. Furthermore, competition (proxied by the number of bidders) and transparency in managing public tenders both increase the likelihood of alternation between providers. Lastly, the estimates suggest that larger municipality size and discretionary power of entrenched political parties might also play a role in favoring incumbent contract renewal.

Type: Article
Title: Contract Renewal in Urban Water Services, Incumbent Advantage, and Market Concentration
DOI: 10.1111/puar.13282
Publisher version: http://dx.doi.org/10.1111/puar.13282
Language: English
Additional information: This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions.
UCL classification: UCL
UCL > Provost and Vice Provost Offices
UCL > Provost and Vice Provost Offices > UCL SLASH
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Political Science
URI: https://discovery.ucl.ac.uk/id/eprint/10123059
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