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Post-Tender Corruption and Risk Allocation:Implications for Public-Private Partnerships




Whilst a lot has been said about how to fight corruption at tender stage in public procurement, post-tender corruption is an issue that remains almost unexplored. In this paper, we make a step towards filling this gap, by studying the relationship between the quality of a country's institutions, in particular its monitoring technologies and corruption, and the level and form of risk transfer to the contractor. We discuss the desirability of state-contingent clauses, which provide insurance to the contractor but are at high risk of manipulation. We derive implications on the benefit and cost of procurement forms which are based on high levels of risk transfer to the private sector, such as Public Private Partnerships (PPPs).

Suggested Citation

  • Elisabetta Iossa & David Martimort, 2011. "Post-Tender Corruption and Risk Allocation:Implications for Public-Private Partnerships," CEIS Research Paper 195, Tor Vergata University, CEIS, revised 19 May 2011.
  • Handle: RePEc:rtv:ceisrp:195

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    Cited by:

    1. repec:bla:jemstr:v:26:y:2017:i:3:p:636-660 is not listed on IDEAS
    2. Daniel Danau & Annalisa Vinella, 2017. "From fixed to state-dependent duration in public-private partnerships," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 26(3), pages 636-660, September.
    3. Giuseppe Gori & Patrizia Lattarulo & Marco Mariani, 2014. "The effect of Regional Law 35/2011 on strategic public works," Studi e approfondimenti 521, Istituto Regionale per la Programmazione Economica della Toscana.

    More about this item


    Corruption; Public Private Partnerships and Risk transfer;

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

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