1. Privatization
... -agent, property rights and public theories, conclude that enterprises operating under public ownership will be less efficient compared to their private sector counterparts. The principal-agent critique relies on arguments based on the existence of information asymmetries and the absence of market mechanisms in the public sector to justify the non-welfare maximizing behaviour of public enterprises ... (Wolf, 1979; Vickers and Yarrow, 1988; Andic, 1992). The property rights theory supports privatization by arguing that a simple reassignment of property rights into private hands will impro...
- Word Count: 1499
- Approx Pages: 6
- Grade Level: Graduate