%2multibyte Version: 5.50.0.2960 CodePage: 1251
%% Produced by Scientific WorkPlace
%% Version 2016010400
%% Created Sat Jan 16 2016 15:54:16 GMT+0000 (BST)
%% Last revised Thu Jan 21 2016 16:58:23 GMT+0000 (BST)
%% preamble
% ,revsymb4-1}
%% 010
%% 100
\documentclass[12pt]{article}
%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
\usepackage{amssymb,amsmath,xcolor,graphicx,xspace,colortbl, rotating}
\usepackage{amsmath}
\usepackage[raggedrightboxes]{ragged2e}
\setcounter{MaxMatrixCols}{10}
%TCIDATA{OutputFilter=LATEX.DLL}
%TCIDATA{Version=5.50.0.2960}
%TCIDATA{Codepage=1251}
%TCIDATA{}
%TCIDATA{BibliographyScheme=Manual}
%TCIDATA{LastRevised=Monday, February 01, 2016 11:10:32}
%TCIDATA{}
%TCIDATA{Language=American English}
\graphicspath{{Simple_Set Up 200116_graphics/}{Simple_Set Up 200116_tcache/}{Simple_Set Up 200116_gcache/}}
\DeclareGraphicsExtensions{.pdf,.svg,.eps,.ps,.png,.jpg,.jpeg}
\newtheorem{theorem}{Theorem}
\newtheorem{acknowledgement}[theorem]{Acknowledgement}
\newtheorem{algorithm}[theorem]{Algorithm}
\newtheorem{axiom}[theorem]{Axiom}
\newtheorem{case}[theorem]{Case}
\newtheorem{claim}[theorem]{Claim}
\newtheorem{conclusion}[theorem]{Conclusion}
\newtheorem{condition}[theorem]{Condition}
\newtheorem{conjecture}[theorem]{Conjecture}
\newtheorem{corollary}[theorem]{Corollary}
\newtheorem{criterion}[theorem]{Criterion}
\newtheorem{definition}[theorem]{Definition}
\newtheorem{example}[theorem]{Example}
\newtheorem{exercise}[theorem]{Exercise}
\newtheorem{lemma}[theorem]{Lemma}
\newtheorem{notation}[theorem]{Notation}
\newtheorem{problem}[theorem]{Problem}
\newtheorem{proposition}[theorem]{Proposition}
\newtheorem{remark}[theorem]{Remark}
\newtheorem{solution}[theorem]{Solution}
\newtheorem{summary}[theorem]{Summary}
\newenvironment{proof}[1][Proof]{\noindent\textbf{#1.} }{\ \rule{0.5em}{0.5em}}
\input{tcilatex}
\begin{document}
\title{\textbf{Choice and Competition in Public Service Provision}\thanks{%
We are grateful to participants in the informal econommic theory workshop at
Nuffield College, for helpful comments on a early presentation of these
ideas.}}
\author{Timothy Besley~ \\
%EndAName
LSE and CIFAR \and James M. Malcomson~ \\
%EndAName
University of Oxford}
\maketitle
\begin{abstract}
In spite of a range of policy initiatives in sectors such as education,
healthcare and security services, whether choice and competition is valuable
remains contested territory. This paper puts forward a canonical model for
framing the the issues where a monopoly incumbent faces potential
competition from an entrant. Following an established tradition, we suppose
that public services are characterized by having unobserved quaility
dimensions. \ We show how the objectives of the providers -- for-profit or
not-for-profit -- affects whether entry occurs. \ If consumers are
well-informed, competition is welfare enhancing in a wide range of cases. We
discuss when policy makers should encourage and discourage entry. \ Our
model also gives an insight into why intiatives are frequently opposed by
incumbent providers even if the latter have non-profit objectives.
\textit{Keywords: }Choice, Competition, Public Service
\textit{JEL codes: }H11, H44, L21, L31.
\end{abstract}
\newpage
\section{Introduction}
Pressures on government finances the world over have spurred calls for cost
saving in the provision of public services. Yet whether there are benefits
from opening up to private competitors in the provision of public services
remains a controversial topic. However, the logic for allowing competition
is superficially compelling; if there are private providers who know how to
produce more cheaply than incumbent public sector providers, then it would
make sense of public services to harness these benefits.
With entry, competition for flexible consumers
determines $U$.~For future use, define $\tilde{U}_{i}^{FP}(\theta _{i},p_{i})
$
\end{document}