Scarce licences

Selection procedures & lottery

Which distribution mechanisms municipalities use: comparative test, lottery and hybrid forms.

Part of: Scarce licences

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).