Large public bureaucracies can be less efficient than private companies because of collusion between middle managers and workers. Giving more power to middle managers can actually increase productivity by preventing this collusion. When middle managers have the authority to make decisions, they are less likely to team up with workers to cheat the system. This is because the threat of punishment for breaking the rules is higher when managers have more power. So, delegating power to middle managers can stop collusion and improve efficiency at a lower cost.