… is from pages 8-9 of Mark Pennington’s 2011 book Robust Political Economy:
Moreover, insofar as market failure theorists are right to focus on ‘incentive compatibility’, they fail to appy this analysis to their favoured institutional alternatives. A consistent analysis of collective action and asymmetric information problems reveals that these are often more pronounced in a public sector environment than they are in a regime of ‘imperfect markets’.
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