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The state often uses public service delegation contracts but is unaware of the precise characteristics of the production cost function of this service. Define the
The state often uses public service delegation contracts but is unaware of the precise characteristics of the production cost function of this service. Define the two types of risk of opportunism on the part of private agents that the public authority faces? What are the two types of delegation contracts put in place by the public authority and indicate how these contracts can manage the problem of adverse selection. Which of these contracts preserves allocative efficiency
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