A critical review of the application of TCE in the interpretation of risk allocation in PPP contracts |
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| Authors: | Chen-Yu Chang |
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| Affiliation: | 1. Bartlett School of Construction and Project Management, University College London , 1–19 Torrington Place, London , WC1H 7HB , UK chen-yu.chang@ucl.ac.uk |
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| Abstract: | Along with the rise of public–private partnerships (PPPs) as a mainstream procurement system, we have seen a growing interest in studies of risk allocation in these projects. One of the serious academic endeavours is to apply both transaction cost economics (TCE) and the resource-based view (RBV) to explain risk allocation patterns found in PPP projects. The existing literature along these lines is deficient in three aspects: inappropriate choice of unit of analysis; poor specification of governance structure; and misinterpretation of asset specificity. A way for improvement is to analyse risk allocation in the context of PPP procurement in its entirety. |
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| Keywords: | competence procurement public–private partnerships risk analysis transaction cost |
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