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PUBLIC-PRIVATE PARTNERSHIP AS A STRATEGIC GAME

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Kargol A., Sokol E.

Optimum. Studia Ekonomiczne

2007

issue 1(33)

109-120

Public-private partnership (PPP) is a form of co-operation of public and private sectors aimed at realisation of public tasks connected to supplying public goods and services by private firms or to their participation. The significance and forms of PPP have been developing for several years according to the changes in economic, social and political conditions of economic activities. At present, PPP can be treated as an important instrument of providing public goods, especially if we take into consideration budgeting constraints. There are a lot of benefits from applying PPP, e.g. increasing of the quality of public goods, decreasing of costs of their providing, more efficient allocation of resources. In the case of engaging a lot of entities in the realisation of any project such as government (central state or local) authority or a government-owned enterprise, project sponsors, construction companies, providers of necessary equipment, plant operators, insurers, etc., they must co-operate in this process. In order to understand motivation of both public and private sectors, it is useful to examine PPP as a game. Game theory contributes to better understanding of the mechanism of PPP and of accompanying strategic issues combined with its functioning.

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1 Optimum. Studia Ekonomiczne

1 Kargol A.

1 Sokol E.

1 2007

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PUBLIC-PRIVATE PARTNERSHIP AS A STRATEGIC GAME