Question

)   Discuss what organizational form (e.g., private firm, government corporation, or normal government production) you think might be appropriate for each of the following. In each case, briefly discuss problems of designing appropriate incentives, rent seeking behavior, and effective regulatory systems. (15 points)

·     Public housing

o  

·     Air traffic control system

o  

·     Prisons

o  

·     Job placement services

o  

·     Administering the food stamp program

Answer 1

                                        Authoritative structures are essentially those structures that incorporate individuals who cooperate like a group and are required to accomplish shared objectives that are set by the head of such hierarchical structures.

• Public housing

                         Public housing can be taken care of both by the private firms just as the administration organizations thinking about that lodging prerequisites are the equivalent for low salary just as high pay workers. The presence of government organizations alongside private firms will direct the market for houses and keep away from the abuse of buyers simultaneously dealing with the necessities of the less advantaged and division of income among the legislature and private firms would be required.

• Air traffic control system

                             Airport regulation framework can be given over to the private firms by the administration companies. Privatization of the equivalent has not occurred for a huge scope, yet in nations like Canada, etc this has been made conceivable in this manner, with administrative estimates this can be made conceivable

• Prisons

                  Penitentiaries ought to be under the administrative control of the legislature considering they are driven by thought processes of open government assistance, security and equity. These obligations can't be passed out to private firms as they won't get any motivators from the equivalent yet the administration may.

• Job placement services

                               Employment position administrations can without much of a stretch be directed by the private firms thinking about that they can win benefits by associating the individuals who need occupations with the organizations who are eager to give occupations and this job doesn't really have a place with the legislature.

• Administering the food stamp program

                                Controlling the food stamp programs is an errand for the administration as the private firms if stays unregulated can take part in storing, theory, etc and this would just bring about the climb in the costs.