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Situational Contracting as a Mode of Governance

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  • Dirk J. Wolfson

Abstract

This article introduces the option to make individual access to excludable public benefits conditional on ascertainable efforts to limit claims. Contracts are situational when front-line staff are mandated to allow for differences in the ability to perform of their counterparts and to offer customized enabling facilities to improve capabilities. Degrees of freedom and transaction costs are controlled through political guidance in protocols, on the basis of apply-or-explain. Situational contracting reveals individual preference, reduces opportunism, furthers trust and induces open innovation. The article presents results of an early application in The Netherlands.

Suggested Citation

  • Dirk J. Wolfson, 2010. "Situational Contracting as a Mode of Governance," Public Management Review, Taylor & Francis Journals, vol. 12(6), pages 857-872, November.
    • Handle: RePEc:taf:pubmgr:v:12:y:2010:i:6:p:857-872
    DOI: 10.1080/14719037.2010.488866
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    References listed on IDEAS

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    1. Julian Le Grand, 2007. "Introduction to The Other Invisible Hand: Delivering Public Services through Choice and Competition," Introductory Chapters, in: The Other Invisible Hand: Delivering Public Services through Choice and Competition, Princeton University Press.
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