2013/03/01 by Eva I. Hoppe, Patrick W. Schmitz · 2 citations
Business, Management and Accounting · Economics, Econometrics and Finance · #Public-Private Partnership Projects #Fiscal Policy and Economic Growth #Public Procurement and Policy
paper · doi:10.1111/1756-2171.12010
openalex publication_date 2013/03/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/15
A government agency wants a facility to be built and managed to provide a public service. Two different modes of provision are considered. In a public‐private partnership, the tasks of building and managing are bundled, whereas under traditional procurement, these tasks are delegated to separate private contractors. The two provision modes differ in their incentives to innovate and to gather private information about future costs to adapt the service provision to changing circumstances. The government agency’s preferred mode of provision depends on the information‐gathering costs, the costs of innovation efforts, and the degree to which effort is contractible.