Third-Party Opportunism and the (In)Efficiency of Public Contracts
Abstract
The lack of exibility in public procurement design and implementation reflects public agents' political risk adaptation to limit hazards from opportunistic third parties--political opponents, competitors, interest groups--while externalizing the associated adaptation costs to the public at large. Reduced exibility limits the likelihood of opportunistic challenge lowering third parties' expected gains and increasing litigation costs. We provide a comprehensible theoretical framework with empirically testable predictions.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jul 29, 2012
- Accession Number
- ADA581956
Entities
People
- Marian W. Moszoro
- Pablo T. Spiller
Organizations
- University of California, Berkeley