Relational Versus Formal Contracting: Do Contracting Governments Adhere to Economic Wisdom?

19 Pages Posted: 6 Apr 2010

See all articles by Scott Lamothe

Scott Lamothe

University of Oklahoma

Meeyoung Lamothe

University of Oklahoma

Date Written: April 6, 2010

Abstract

In this paper, we examine if local public managers adhere to the precepts of economic and contracting theory regarding how they perceive the nature of services (hard versus soft), the types of contracts they write (formal versus relational), and the contract management styles they adopt. We find support for theoretical expectations concerning the perceptions of services and the formalness of contracts. However, our results indicate that public officials adopt more relational styles of management for hard services than expected.

Note: The data collection for this project is ongoing. The analyses presented in this paper are based on the early returns. Hence, the findings are preliminary in nature and are best interpreted as such. That is, the results are subject to revision as more data are gathered.

Suggested Citation

Lamothe, Scott and Lamothe, Meeyoung, Relational Versus Formal Contracting: Do Contracting Governments Adhere to Economic Wisdom? (April 6, 2010). Western Political Science Association 2010 Annual Meeting Paper, Available at SSRN: https://ssrn.com/abstract=1585044 or http://dx.doi.org/10.2139/ssrn.1585044

Scott Lamothe (Contact Author)

University of Oklahoma ( email )

455 W. Lindsey
Dale Hall Tower, Room 205
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United States
405-325-6420 (Phone)

Meeyoung Lamothe

University of Oklahoma ( email )

455 West Lindsey St.
Norman, OK 73019
United States
405-325-6469 (Phone)

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