Recently the Portuguese Government announced the launching of public private partnerships to build hospitals with the distinctive feature that both infrastructure construction and the clinical activities management will be awarded to a private party. Accordingly there appear coordination issues...

This paper investigates the design of optimal procurement mechanisms in the presence of corruption. After the sponsor and the contractor sign the contract, the latter may bribe the inspector to misrepresent quality. Thus, the mechanism affects whether bribery occurs. I show how to include...