Public–Private Partnerships, Commitment and X-Inefficiency

Indrani Roy Chowdhury and Prabal Roy Chowdhury

Arthaniti: Journal of Economic Theory and Practice, 2018, vol. 17, issue 2, 157-167

Abstract: We examine the formation of public–private partnerships (PPPs), one of the most important organisational forms to evolve over the last few decades. Given the volume of infrastructural investment required, PPPs seem essential for India's development. We unearth a role for PPP formation that is new in the literature, namely its role as a commitment device. In particular, we argue that the presence of the private firm allows a PPP to credibly commit to discontinuing the project when efficiency considerations demand so. JEL: D02, D04,D72, D73, D43

Keywords: Public–private partnerships; risk-sharing; X-inefficiency; commitment; organisational structure (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0976747918795226 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:artjou:v:17:y:2018:i:2:p:157-167

DOI: 10.1177/0976747918795226

Access Statistics for this article

More articles in Arthaniti: Journal of Economic Theory and Practice
Bibliographic data for series maintained by SAGE Publications ().