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date: 28 January 2020

Abstract and Keywords

This article analyses the relationship between competition and cooperation at the local level. It discusses the contrasting views that competition provides better and cheaper services than central planning, and that competition for public services induces inefficiencies. The article suggests that, although competition might bring gains, cooperation is more important, and explains that, in theory, cooperation reduces the efficiency of competitive processes, but no pure competition exists anyway, because of transactions and information costs.

Keywords: competition, cooperation, public services, competitive processes, transaction costs, information costs

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