Citation

Discussion Paper Details

Please find the details for DP8167 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Public-private partnerships versus traditional procurement: An experimental investigation

Author(s): Eva I Hoppe-Fischer, David J Kusterer and Patrick W. Schmitz

Publication Date: December 2010

Keyword(s): experiment, incomplete contracts, procurement and public-private partnerships

Programme Area(s): Industrial Organization

Abstract: A government agency wants an infrastructure-based public service to be provided. Our experimental study compares two different modes of provision. In a public-private partnership, the two tasks of building the infrastructure and operating it are delegated to one private contractor (a consortium), while under traditional procurement, these tasks are delegated to separate contractors. We find support for the theoretical prediction that, compared to traditional procurement, a public-private partnership provides stronger incentives to make cost-reducing investments (which may increase or decrease service quality). In two additional treatments, we study governance structures which explicitly take subcontracting within private consortia into account.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=8167

Bibliographic Reference

Hoppe-Fischer, E, Kusterer, D and Schmitz, P. 2010. 'Public-private partnerships versus traditional procurement: An experimental investigation'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=8167