Sofia Lundberg

Per-Olov Johansson

Centre for Economic Policy Research (Great Britain)

Giancarlo Spagnolo

Mats Bergman

Non-contractible quality dimensions are at risk of degradation when the provision of public services is privatized. However, privatization may increase quality by fostering performance-improving innovation, particularly if combined with increased competition. We assemble a large data set on elderly care services in Sweden between 1990 and 2009 and estimate how opening to private provision affected mortality rates -- an important and not easily contractible quality dimension -- using a difference-in-difference-in-difference approach. The results indicate that privatization and the associated increase in competition significantly improved non-contractible quality as measured by mortality rates. It also reduced the cost per resident, although left total cost unaffected.

Evidence from Elderly Care in Sweden

Privatization and Quality

Mats A. Bergman

Evidence from Elderly Care

Public Procurement and Non-contractible Quality

Matthias Blonski

Prisoners' Other Dilemma

Gustavo Piga

Nicola Dimitri

How can organizations ensure that they can get best value for money in their procurement decisions? How can they stimulate innovations from their dedicated suppliers? With contributions from leading academics and professionals, this 2006 handbook offers expert guidance on the fundamental aspects of successful procurement design and management in firms, public administrations, and international institutions. The issues addressed include the management of dynamic procurement; the handling of procurement risk; the architecture of purchasing systems; the structure of incentives in procurement contracts; methods to increase suppliers' participation in procurement contests and e-procurement platforms; how to minimize the risk of collusion and of corruption; pricing and reputation mechanisms in e-procurement platforms; and how procurement can enhance innovation. Inspired by frontier research, it provides practical recommendations to managers, engineers and lawyers engaged in private and public procurement design.

Handbook of Procurement

Giancarlo Spagnolo

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