Lindqvist, Erik - Institutet för Näringslivsforskning (IFN) - 2008
A wide range of services provided by the public sector are credence goods, i.e., services for which the producer has …. Public sector managers have no incentive to cut cost, implying that optimal contracts don't entail rents unless quality is … very important. Public sector managers instead use their informational advantage to avoid unpleasant tasks. Empirical …