Public Decision-Making Processes and Asymmetry of Information

  • Massimo Marrelli
  • Giacomo Pignataro

Table of contents

  1. Front Matter
    Pages i-xv
  2. Introduction

    1. Jean-Jacques Laffont
      Pages 1-13
  3. Theory

    1. Front Matter
      Pages 15-15
    2. Massimo Marrelli, Francesca Stroffolini
      Pages 17-35
    3. Isidoro Mazza
      Pages 37-66
    4. Giacomo Pignataro
      Pages 89-107
  4. Applications

    1. Front Matter
      Pages 109-109
    2. Michael Waterson, Maria Vagliasindi
      Pages 111-146
    3. Ilde Rizzo
      Pages 147-164
    4. Andrew Jones, Roberto Zanola
      Pages 165-188
  5. Back Matter
    Pages 203-206

About this book

Introduction

The problems arising from the existence of asymmetric information in public decision making have been widely explored by economists. Most of the traditional analysis of public sector activities has been reviewed to take accountofthe possible distortions arising from an asymmetric distribution of relevant information among the actors of the public decision-making process. A normative approach has been developed to design incentive schemes which tackle adverse selection and moral hazard problems within public organisations: our understanding of these problems is now much better, and some of the mechanisms designed have had important practical implications. While this analysis is still under way in many fields of public economics, as the papers by Jones and Zanola, and Trimarchi witness, a debate is ongoing on the possible theoretical limitations ofthis approach and on its actual relevance for public sector activities. This book encompasses different contributions to these issues, on both theoretical and practical areas, which were firstly presented at a conference in Catania. The innermost problem in the current discussion arises from the fact that this normative analysis is firmly rooted in the complete contracting framework, with the consequence that, despite the analytical complexities of most models, their results rely on very simplified assumptions. Most complexities of the organisation of public sector, and more generally, of writing "contracts", are therefore swept away.

Keywords

Non-governmental organizations (NGOs) calculus organizations regulation sets

Editors and affiliations

  • Massimo Marrelli
    • 1
  • Giacomo Pignataro
    • 2
  1. 1.University of NaplesItaly
  2. 2.University of CataniaItaly

Bibliographic information

  • DOI https://doi.org/10.1007/978-1-4615-1583-8
  • Copyright Information Kluwer Academic Publishers 2001
  • Publisher Name Springer, Boston, MA
  • eBook Packages Springer Book Archive
  • Print ISBN 978-1-4613-5626-4
  • Online ISBN 978-1-4615-1583-8
  • About this book