It has been almost 40 years since Chile reformed its electricity sector. In 1982, the Electricity Act created an energy market for generators and large customers to negotiate supply contracts. It also established a centralized dispatch of power plants in ascending order of generation cost,...

The authors attribute many of the problems in highway privatization to the combined effect of features of the highway business and the fixed term contracts used. First, traffic forecasts are notoriously imprecise, and the franchise holder has almost no control over demand. Second, most...