Introducing Competition into the Piped Water Market: A Theoretical Analysis of Common Carriage and Franchise Bidding

Water scarcity is not exclusively a concern of the poor. Developed countries are increasingly facing problems related to higher per capita consumption and pollution so that enhancing the efficiency of the water supply ranks among the main global challenges of the future. The necessary improvements are not only a matter of technical progress but also of institutional design.

Using tools of modern industrial economics, Urs Meister examines the effects of privatisation and competition in the...