Doing It by the Book: Political Contestability and Public Contract Renegotiations
5 Pages Posted: 24 May 2021
Date Written: March 23, 2021
The frequent renegotiation of public contracts is variously attributed to collusion between officials and bidders, the desire to circumvent budgetary rules, and other factors. This column challenges the industrial organisation view of public contract renegotiation, showing that frequent renegotiations can be understood as a consequence of the non-remediable, rigid nature of contracts rather than an inherent consequence of opportunistic behaviour.
Keywords: Procurement, Political Contestability, Contractual Rigidity, Renegotiations
JEL Classification: D23, D72, D73, D78, H57
Suggested Citation: Suggested Citation