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• W2108546574 abstract "We analyze the economic consequences of strategic delegation of the right to decide between public or private provision of governmental service and/or the authority to negotiate and renegotiate with the chosen service provider. Our model encompass both bureaucratic delegation from a government to a privatization agency and electoral delegation from voters to a government. We identify two powerfull effects of delegation when contracts are incomplete: The incentive effect increases the incentive part of service providers’ remuneration and we show that strategic delegation may substitute formal incentive contracts. The bargaining effect improves the bargaining position vis a vis a private firm with market power and leads to al ower price for the service." @default.
• W2108546574 created "2016-06-24" @default.
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• W2108546574 date "2007-12-01" @default.
• W2108546574 modified "2023-09-23" @default.
• W2108546574 title "Arm's Length Provision of Public Services" @default.
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• W2108546574 hasPublicationYear "2007" @default.
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