| Addressing agency problems arising from privatizing public services, this research incorporates politicians, private vendors and citizens as main actors into the positive analysis of privatization process. The formal model that I present in this research is applicable to various kinds of public services. The findings of both formal and empirical analyses suggest substantial policy implications for the public management of privatized public services. Based on game-theoretic models and logit analyses, this research suggests effective monitoring systems and their relationships to different characteristics of public service recipients. The key factor in privatization is not what to privatize but for whom to privatize and how to manage it. This research thus presents policy implications for privatizing public services for vulnerable populations. By introducing a formal model and testable relationships between parameters of interest, this research presents useful public management policy implications for many privatized public services. |
