Social Sciences
4 years ago

Local public services thrive with combined vertical disintegration and horizontal integration.

SSRN Electronic Journal
Putting all One’s Eggs in One Basket: Relational Contracts and the Provision of Local Public Services
Claudine Desrieux, Eshien Chong, Stéphane Saussier

Paper Summary

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The article explores why local public authorities often give all their services to one company, even though competition is encouraged. By looking at data from French authorities, the researchers found that combining different services under one operator can actually improve performance and save money for the public. This happens when the services are managed separately within the same company.