During his successful 1991 bid for Mayor of Indianapolis, Stephen Goldsmith clear its preference for privatization of city services. Once in power, however, Goldsmith decided on another, more sophisticated approach. Inefficiency in public service, he thinks, can not be the result of their being public, but rather reflects the lack of competition for which they provide. In this light, Goldsmith holds a bold experiment: to force city departments to bid against private providers. This case focuses on the early stages of the experiment Goldsmith, a time in which city public works crews must, for the first time, to compete with private firms contracted repair of potholes. Case raises fundamental questions about how to structure a public-private competition to the correct comparison would be possible, and how to determine the exact nature of public spending. In addition, it allows for a more theoretical discussion of questions about some of the functions should always be public, while others need to be private, and still others provided private but publicly-funded. HKS Case Number 1270.1 "Hide
by Howard Husock, Mark Moore, Linda Kaboolian 13 pages. Publication Date: January 1, 1995. Prod. #: HKS508-PDF-ENG
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