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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...
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The make-or-buy decision is analyzed in a three-layer principal-management-agent model. There is a cost-saving/quality tradeoff in effort provision. The principal chooses between employing an in-house management and contracting with an independent management; the cost-saving incentives facing...
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-or-buy decision ; multitask principal-agent problem ; outsourcing …
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(negative) such externality favors make (buy). -- make-or-buy decision ; manipulation ; outsourcing …
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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
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/10009147384