Trust and transaction costs in public–private partnerships

The number of public–private partnerships (PPP) is on the rise. The authors analyse empirical evidence (including outcomes from interviews and a survey of civil servants in Germany), about the importance of transaction costs and trust in PPP implementation and performance. The paper makes an important contribution to the literature by reflecting on trust relations in PPPs, as well as providing empirical evidence for higher transaction costs in PPPs, compared to entirely public sector provision.