Many industries and sectorsʺ of a modern economy display the interaction of private and public agents which forms the topic of this seminar. A first approximation classification identifies three broad types of situations, which beyond the prima facie similarity, are however radically different...

We study a long-term relationship between a risk-neutral firm that has been delegated to manage a local utility project and a regulator that has always the option-to-revoke the delegation. We show that when the threat of revocation is credible and the cost of exercising it is not too high, the...