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We survey the literature on the effects of public sector outsourcing. Guided by theory, we systematically arrange … indicates that public sector outsourcing generally reduces costs without hurting quality. This is clearly the case for … “perfectly contractible services” like garbage collection, but outsourcing often seems to work reasonably well also for some …
Persistent link: https://www.econbiz.de/10009147382
The make-or-buy decision is analyzed in a simple two-task principal-agent model. There is a cost-saving/quality tradeoff in effort provision. The principal faces a dichotomous choice between weak ("make") and strong ("buy") cost-saving incentives for the agent; the dichotomy is due to an...
Persistent link: https://www.econbiz.de/10008478919
The make-or-buy decision is analyzed in a simple framework combining contractual incompleteness with the existence of imperfect but contractible performance measures. Contractual incompleteness gives rise to two regimes, identified with make and buy. The performance measure on which...
Persistent link: https://www.econbiz.de/10008460550