Title: incentive effects
from SLATE: Another shuttle safety piece in the [Washington] Post evolves around NASA's privatization of much of the program in the mid-1990s. The piece is pretty shallow, but it does have one important bit: NASA docks Contractors' pay when they run into problems
Thank you very much, Jim, for pointing out the article. Setting up an
appropriate incentive system seems to have eluded most privatization
schemes of which I am aware.
Every economist knows about principal agent problems, but I really hear
them discussed in terms of privatization.
--
Michael
