Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

Tuesday, July 1, 2014

IPPP – Risks and opportunities An economic perspective

Julie de Brux (Sorbonne Business School) and Frederic Marty (French National Centre of Scientific Research (CNRS) senior fellow, Research Group on Law, Economics and Management, University of Nice Sophia-Antipolis and OFCE, Innovation and Competition Department Sciences Po) analyze IPPP – Risks and opportunities An economic perspective.

ABSTRACT: This article analyzes some of the issues raised by institutionalized public-private partnerships in an economic perspective. We demonstrate that although they may address some of the main limits of purely contractual public-private partnerships, such as the issues of control, know-how transfer, or additional financial cost, they may induce some intrinsic risks, related to alterations of the contractual incentive structure and judicial challenges. Based on economic theory, we stem some recommendations and comments about the adequacy of legal requirements with economic normative views.

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