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dc.contributor.authorEika, Karien
dc.date.accessioned2012-09-20T13:10:43Z-
dc.date.available2012-09-20T13:10:43Z-
dc.date.issued2004-
dc.identifier.urihttp://hdl.handle.net/10419/62964-
dc.description.abstractQuality in the human services has long term effects. Reduced quality of service now increases the service recipients’ future service needs and other social costs. This paper shows that such effects should be considered when a government designs contracts with a for-profit service provider. If the contract relies on verifiable information only, short contract periods fail to give the provider proper incentives to internalize future effects of quality. Long term contracts are problematic if the effects of quality are not over time indicated by verifiable measures. Relational contracts seem more robust to changes in the model’s informational assumptions and rely on trust to deal with holdups. Long term quality effects matter for the relative merits of intergrated provision and contracting out, and may create adverse quality incentives if a for-profit provider has market power.en
dc.language.isoengen
dc.publisher|aUniversity of Oslo, Department of Economics |cOsloen
dc.relation.ispartofseries|aMemorandum |x2004,18en
dc.subject.jelD69en
dc.subject.ddc330en
dc.subject.keywordhuman servicesen
dc.subject.keywordquality of serviceen
dc.subject.keywordfor-profiten
dc.subject.stwÖffentliche Dienstleistungen
dc.subject.stwOutsourcingen
dc.subject.stwDienstleistungsqualitäten
dc.subject.stwVertragstheorieen
dc.titleWhen quality today affects service needs tomorrow-
dc.typeWorking Paperen
dc.identifier.ppn470467967en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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