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Bureaucratic Responses

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  • Canice Prendergast

Abstract

This paper's interest is in understanding how bureaucracies should respond to their clients. I claim that because many services are not priced, the responses of bureaucracies to their clients will often be the opposite of the reactions of "normal" firms. Specifically, bureaucracies ignore the most credible complaints from clients, provide the poorest service to clients who value the service most, and require the most red tape for clients who already know their needs.

Suggested Citation

  • Canice Prendergast, 2016. "Bureaucratic Responses," Journal of Labor Economics, University of Chicago Press, vol. 34(S2), pages 183-215.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/683780
    DOI: 10.1086/683780
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    References listed on IDEAS

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    1. Abhijit V. Banerjee, 1997. "A Theory of Misgovernance," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1289-1332.
    2. Avinash Dixit, 2002. "# Incentives and Organizations in the Public Sector: An Interpretative Review," Journal of Human Resources, University of Wisconsin Press, vol. 37(4), pages 696-727.
    3. Aghion, Philippe & Tirole, Jean, 1997. "Formal and Real Authority in Organizations," Journal of Political Economy, University of Chicago Press, vol. 105(1), pages 1-29, February.
    4. Timothy Besley & Maitreesh Ghatak, 2005. "Competition and Incentives with Motivated Agents," American Economic Review, American Economic Association, vol. 95(3), pages 616-636, June.
    5. Canice Prendergast, 2002. "Consumers and Agency Problems," Economic Journal, Royal Economic Society, vol. 112(478), pages 34-51, March.
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    Cited by:

    1. Mishra, Ajit & Sarangi, Sudipta, 2016. "High-powered incentives and communication failure," Journal of Economic Behavior & Organization, Elsevier, vol. 131(PA), pages 51-60.

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