University / Organisation : IAE Paris Sorbonne

Paper or project ? paper

Title : Contested Waters: Analyzing Third-Party Challenges in French Water Contract Governance (2005-2023)

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Abstract : While some studies have examined how the risk of third-party opportunism affects public contract rigidity, no research has empirically investigated how it manifests or how frequently it occurs. These characteristics remain largely unexplored. This study fills this gap by analyzing 1,690 first-instance administrative litigation cases from 2005 to 2023, related to the management of drinking water and sanitation services in France. Using logistic regressions, the study examines how and when third-party opportunism is most likely to occur. The results reveal that, although economic competitors excluded from tender processes are the most likely to initiate legal actions, interest groups exhibit the highest levels of opportunism, challenging decisions on tendering, contract governance and water tariffs. These findings offer new insights into the dynamics of litigation in public-private partnerships and the strategic behavior of actors, highlighting the need to account for third-party opportunism in the design and governance of future contracts.