Contractual Efficiency of PPP Infrastructure Projects: An Incomplete Contract Model

Table 2

Competitive bidding equilibrium solutions (CBEs) in the basic model.

CBEs	Order relationships of the marginal service fees	Equilibria of basic model	Bidding price	Liquidation	Moral hazard
1		D		×	×
2		C		×	○
3		B		○	×
4		B		○	×

Note. The ○ sign in the liquidation column means that the project continues, whereas the × sign means that the project is liquidated. The ○ sign in the moral hazard column means that a moral hazard does not occur, whereas the × sign means that a moral hazard occurs.