There is a drive towards delivering and operating public infrastructure through public-private partnership rather than traditional public procurement. The assessment of the value for money achieved by the two alternative approaches rests in the cost of financing and their efficiency in delivery...

Building upon Iossa and Martimort (2008), we study the main incentive issues and the form of optimal contracts for Public Private Partnerships (PPPs) in transports. We present a basic model of procurement in a multitask environment in which a risk-averse firm chooses unobservable efforts in...

The paper analyzes the service provision of infrastructure from the aspect of demand risk sharing. The society benefits more under the public-private partnership (PPP) than under government operation, because the government can transfer some risks to private firms through PPP. To reduce total...