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We also find that the optimal concession periods are independent of concession period structures.
By viewing a BOT contract as a combination of road capacity, toll and government guarantee, this paper investigates optimal concession contract design under both symmetric and asymmetric information about the marginal maintenance cost of private investors.
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We find that the optimal length of concession period and the service quality of the infrastructure depend on the two parties' operational costs and negotiation powers.
In this paper, we present the results of the first stage of a research project aimed at determining the optimal build-operate-transfer (BOT) project life span and concession period endogenously and interdependently by maximizing the combined benefits of stakeholders.
We first derive optimal subsidy levels for the government to obtain optimal social welfare, given concession periods.
This paper simultaneously compares socially optimal toll prices in both private and public operation periods, road quality, and concession period under SPCS and TPCS, respectively.
He made concession after concession.
It wasn't optimal.
"What's optimal?
Arnold sighed in concession.
I thought, Concession speech?
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