Spence Signalling as a Technique for Welfare Improvement of Public-Private Partnerships (PPP) Infrastructures

When bidding on a public project, be it an infrastructure project or a service project, Public Private Partnership (PPP) service providers of a particular service have a higher edge on information about services, both quality and pricing, than their clients or users of the service. Only a PPP service provider can signal their type to the bidding authorities, whether they will outsource a part of their project, otherwise this information is hidden. This study conceptualises a signalling game for keystone projects across state/ national borders. This would aid both the Government and PPP to increase bothy efficiencies and effectiveness and thereby provide welfare for the inhabitants residing around the trans-border areas thereby enhancing their livelihood potential both in their personal as well as family lives.