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Putting All One's Eggs in One Basket: Relational Contracts and the Provision of Local Public Services

Author

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  • Claudine Desrieux
  • Eshien Chong
  • Stéphane Saussier

Abstract

The provision of local public services is increasingly being contracted out to private companies. We observe that local governments regularly choose the same private operator for a range of different services, and develop a model of relational contracts that shows how this strategy may lead to better performance at lower cost for public authorities. We test the implication of our model using an original database of the contractual choices made by 5000 French local public authorities in the years 1998, 2001 and 2004.

Suggested Citation

  • Claudine Desrieux & Eshien Chong & Stéphane Saussier, 2010. "Putting All One's Eggs in One Basket: Relational Contracts and the Provision of Local Public Services," RSCAS Working Papers 2010/86, European University Institute.
  • Handle: RePEc:rsc:rsceui:2010/86
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    References listed on IDEAS

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    Cited by:

    1. Stéphane Saussier & Carine Staropoli & Anne Yvrande-Billon, 2009. "Public–Private Agreements, Institutions, and Competition: When Economic Theory Meets Facts," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 35(1), pages 1-18, September.
    2. Klenio Barbosa & Pierre C. Boyer, 2012. "Discrimination in Dynamic Procurement Design with Learning-by-doing," CESifo Working Paper Series 3947, CESifo Group Munich.

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    Keywords

    bundling; contract; public-private partnerships; local public services;

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