Procurement (and concession) contracts are agreements granting the right to construct public works, operate and provide a service/good. Themain advantage of a procurement contract is that it passes full responsibility for investment and operations to the private sector and consequentlyprovides...

To avoid high profit levels often experienced in countries where monopolies in public utility sectors are regulated through price-cap mechanisms, several regulatory agencies have recently introduced profit-sharing (PS) clauses aimed at obtaining price reductions to the benefit of consumers....

Procurement awarding mechanisms based on average price have been advocated to soften price competition and reduce cost overruns. We show that their theoretical support is shaky. When the bid closest to the average is awarded, firms submit identical bids, making the selection extremely costly and...