Risk Sharing in Public-Private Partnerships

Ronit Mukherji ()
Additional contact information
Ronit Mukherji: Ashoka University

SN Operations Research Forum, 2023, vol. 4, issue 4, 1-17

Abstract: Abstract Public-private partnerships (PPPs) have been widely used to finance many projects. Despite the growing importance of PPPs, a serious attempt has not been made to come up with a unified theory which can understand the different incentive mechanisms, risks, and heterogeneity embedded in a PPP structure which can often lead to their failure. Using a global games framework, this paper achieves to do exactly that by elaborating upon the role of coordination and uncertainty in these projects. With heterogeneous information, the incidence of failure can be uniquely identified by characterizing and defining the equilibrium. Comparative static results point to how policymakers can improve the probability of success in these partnerships. The incentive mechanisms also highlight how a PPP structure can do better than other forms of investment organization.

Keywords: Public-Private Partnerships; Global games; Risk sharing (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s43069-023-00254-z Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:snopef:v:4:y:2023:i:4:d:10.1007_s43069-023-00254-z

Ordering information: This journal article can be ordered from
https://www.springer.com/journal/43069

DOI: 10.1007/s43069-023-00254-z

Access Statistics for this article

SN Operations Research Forum is currently edited by Marco Lübbecke

More articles in SN Operations Research Forum from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().