Estache, AntonioGuasch, Jose-LuisIimi, AtsushiTrujillo, Lourdes2012-06-012012-06-012008-07https://hdl.handle.net/10986/6847Multidimensional auctions are a natural and practical solution when auctioneers pursue more than one objective in their public-private-partnership transactions. However, it is difficult to achieve auction efficiency with multiple award criteria. Using auction data from road and railway concessions in Latin America, the probability of renegotiation this paper estimates by a two-stage least squares technique with a binary selection in the first-stage regression. The findings show that auctioneers tend to adopt the multidimensional format when the need for social considerations, such as alleviation of unemployment, is high. This implies that such political considerations could hinder efficiency and transparency in auctions. The analysis also shows that the renegotiation risk in infrastructure concessions increases when multidimensional auctions are used. Rather, good governance, particularly anti-corruption policies, can mitigate the renegotiation problem.CC BY 3.0 IGOADVERSE SELECTIONAIRPORTSAUCTIONAUCTION DESIGNAUCTION MECHANISMAUCTION MECHANISMSAUCTIONSBANKRUPTCIESBANKRUPTCYBIDBIDDING FOR CONCESSIONSBIDDING PROCESSBIDSBUSBUS INDUSTRYCAPABILITYCOMPETITIVE BIDDINGCOMPETITIVE PROCUREMENTCONCESSION CONTRACTSCONCESSION TRANSACTIONSCONCESSIONAIRESCONTRACT PERIODSCOUNTRY DUMMYCREDIBILITYCURRENCYCURRENCY CRISISDEFICITSDEVELOPING COUNTRIESDEVELOPMENT BANKDIESELDIVESTITUREDUMMY VARIABLEDUMMY VARIABLESELECTRICITYELECTRICITY DISTRIBUTIONFINANCIAL CAPACITYFINANCIAL VIABILITYFREIGHTFREIGHT SERVICEFUTURE DEMANDGLOBAL STANDARDSGOOD GOVERNANCEGOVERNANCE INDICATORSGOVERNANCE INDICESGOVERNMENT COMPENSATIONGOVERNMENT POLICIESGOVERNMENT POLICYHIGHWAYHIGHWAY CONSTRUCTIONHOLDINGINFRASTRUCTURE CONCESSIONINFRASTRUCTURE CONCESSIONSINFRASTRUCTURE DEVELOPMENTINFRASTRUCTURE OPERATIONSINFRASTRUCTURE SECTORINSTRUMENTINTERNATIONAL BANKINVESTMENT REQUIREMENTSINVESTMENT VALUELACK OF TRANSPARENCYLATIN AMERICANLEASE CONTRACTLENGTH OF ROADLENGTH OF ROADSLICENSESLIVING STANDARDSLOCOMOTIVEMIDDLE EASTMISSING DATAMOTORWAYSNATIONAL RAILWAYNETWORKSNEW TECHNOLOGYNORTH AFRICAPASSENGER RAILPASSENGER SERVICESPASSENGER TRAINPOLITICAL CONSIDERATIONSPOSITIVE COEFFICIENTPOWERPRICE COMPETITIONPRIVATE OPERATORSPRIVATE PARTNERSHIPPRIVATE SECTORPRIVATE SECTOR INVOLVEMENTPRIVATE SECTOR PARTICIPATIONPRIVATIZATIONPRODUCTIVITYPUBLIC INFRASTRUCTUREPUBLIC PROCUREMENTPUBLIC SECTORPUBLIC SERVICESPUBLIC-PRIVATE PARTNERSHIPQUALITY OF SERVICESRAILRAIL FREIGHTRAIL INDUSTRYRAIL PROJECTSRAIL SECTORRAIL SERVICESRAILROADRAILROAD CONCESSIONSRAILROADSRAILWAYRAILWAY COMPANIESRAILWAY COMPANYRAILWAY INDUSTRYRAILWAY NETWORKRAILWAY SECTORRAILWAY SYSTEMRAILWAYSREGULATORY ENVIRONMENTREGULATORY FRAMEWORKRELIABILITYRENEGOTIATIONRENEGOTIATIONSRESULTRESULTSRETRENCHMENTRETURNROADROAD CONCESSIONSROAD PROJECTSROAD SECTORROAD TRAFFICROUTESSANITATIONSOCIAL COSTSPEEDSSUB-SAHARAN AFRICATARIFF CHANGESTECHNOLOGICAL DEVELOPMENTTECHNOLOGY DEVELOPMENTTELECOMMUNICATIONSTELEVISIONTENDERSTOLLTOLL ROADTRAFFICTRANSACTIONTRANSMISSIONTRANSPARENCYTRANSPORTTRANSPORT INFRASTRUCTURETRANSPORT SECTORTRANSPORTATIONTRUEUNEMPLOYMENT RATEUNEMPLOYMENT RATESURBAN DEVELOPMENTUSERUTILITIESWATER DISTRIBUTIONWEBWORLD DEVELOPMENT INDICATORSWorld Bank10.1596/1813-9450-4665