Public Private Partnership and Game Theory Kargol, Aneta – Sokół, Ewa

Public-private partnership (PPP) is a form of co-operation of public and private sector, aiming at the realisation of public tasks connected to supplying public goods and services by private firms or with their participation. The significance and forms of PPP have been developing for several years according to changes in economic, social and political conditions of economic activity. At present, PPP can be treated as an important instrument of providing public goods, especially if we take to the consideration budgeting constraints. There are a lot of benefits with applying PPP, e.g. increasing of the quality of public goods, decreasing of costs of their providing, more efficient allocation of resources. In the case of engaging a lot of entities in the realisation of any project such as government (central state or local) authority or a government-owned enterprise, project sponsors, construction companies, providers of necessary equipment, plant operators, insurers, etc., they must cooperate one another. In order to understand motivation both public sector and private sector it is useful to examine PPP as a social game. Game theory contributes to better understanding the mechanism of PPP and accompanying social dilemmas combining with it functioning.