Part of: Scarce licences
What does follow legally from self-created scarcity — and why lotteries or periodic redistribution are not automatically required.
Three main forms
- Comparative test — candidates are ranked on qualitative criteria (business plan, experience, control measures). Requires strong and objectifiable criteria.
- Lottery — all candidates meeting the threshold requirements draw for the licence. Maximally transparent, but provides limited steering on quality.
- Hybrid model — first a qualitative test, then a lottery among the remaining suitable candidates.
Points of attention
Procedures must be foreseeable (published in advance), guarantee equality (same information for everyone) and be verifiable (reasoning afterwards).