Public sector outsourcing, in the form of private production of tax-ﬁnanced services, is on the increase with economic and social consequences for consumers, taxpayers, and employees. The development has given rise to so-called quasi-markets with choice and competition between public, for-proﬁt, and non-proﬁt providers. By introducing the main characteristics of quasi-markets with a focus on prices, this article provides background perspectives. It sets the stage for the other six articles on public sector outsourcing in this special issue of the journal. (JEL codes: D23, H11, H44, L33).
CESifo Economic Studies
Perspectives on Public Sector Outsourcing: Quasi–Markets and Prices
Scientific Article in English