Jean Beuve, Marian W. Moszoro, Pablo T. Spiller, 23 March 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.

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