Economies of scope

Coordination among the grantor and the concessionaire

Reduction of transaction costs resulting from fewer contracts

Equity and same quality of the service provided to citizens

Technological innovation given that positive linkages between size and innovation can occur in presence of high sunk costs

Quality standardisation that derives from the same organisation of inputs

Economies of scale especially in the collection phase

Competitive environment

Lower bargaining power of the concessionaire

More symmetric information and performance comparison among competitors

Low market concentration that if not properly regulated may lead to inefficiency in the medium-term due to the loss of market attractivity for potential efficient firms

Reduced risks of market foreclosure

level playing field