Informational rents in oil and gas concession auctions in Brazil

A-Tier
Journal: Energy Economics
Year: 2014
Volume: 46
Issue: C
Pages: 93-101

Authors (2)

Brasil, Eric Universo Rodrigues (not in RePEc) Postali, Fernando Antonio Slaibe (Universidade de São Paulo)

Score contribution per author:

2.018 = (α=2.02 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This article aims to estimate the informational rents earned by winning bidders in oil and gas exploration and production auctions in Brazil. We estimate the distributions of bids and bidders' private valuations using a nonparametric structural model and assuming independence and asymmetry between participants. Petrobras, the Brazilian state-owned petroleum giant and former oil sector monopolist, was considered a competitor that was distinct from other competitors. Thus, we investigate a database based on information from all auctions held between 1999 and 2008. The results suggest that Petrobras earned significantly higher information rents than other competitors. Such rents ranged from 15% to 63%, depending on the number and type of competitors.

Technical Details

RePEc Handle
repec:eee:eneeco:v:46:y:2014:i:c:p:93-101
Journal Field
Energy
Author Count
2
Added to Database
2026-01-29