Managing Conflict In Public-Private Partnerships: Overcoming Adverse Selection of Substitute Services

Public-private partnerships (PPPs) have become increasingly popular as a way to leverage the strengths of the public and private sectors to deliver public goods and services. However, conflicts can arise in PPPs, especially when there is adverse selection of substitute services. This occurs when the private partner provides services that are of lower quality than what the public partner expects or desires, leading to conflicts that can affect the success of the partnership. By establishing clear goals and standards, managing conflict, ensuring accountability and building trust, this study can overcome adverse selection and can effectively manage conflict. Through strong partnerships, public and private partners can deliver high quality services that benefit the public and drive economic growth.