Optimal contracting with private military and security companies

Fahn, Matthias; Hadjer, Tahmina Sadat

doi:10.1016/j.ejpoleco.2014.10.004

Cited by 5 publications

(2 citation statements)

References 37 publications

(40 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Contract structures are set by employers after identification of needs; intra-sector competition is determined after contracts are announced or advertised. Thus, in the principal–agent dynamics between PMSCs and employers (Fahn and Hadjer, 2015), contract structures are known by employers, but intra-sector competition is unknown and determined by the market. In each instance where PMSCs are employed, contract structures establish performance incentives and how firms are compensated for services (Dickinson, 2007).…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Private military and security companies, contract structure, market competition, and violence in Iraq

Tkach

2017

Conflict Management and Peace Science

View full text Add to dashboard Cite

Conflict environments exacerbate an incentive dilemma between employers and private military and security companies (PMSCs). PMSCs seek to maximize profits, but employers seek to minimize expenses and maximize services. We argue that PMSCs are influenced by two complementary economic factors: contract structure and intra-sector competition. Contract structures are set by employers and establish compensation constraints and intra-sector competition identifies potential replacements. Both impact service delivery. We find that PMSCs with contract structures that lack performance incentives, even in the presence of competition, increase the likelihood of violence in Iraq. PMSCs that lacked intra-sector competition had a similar but smaller effect.

show abstract

Section: Introductionmentioning

confidence: 99%

“… 1. Private contract support has evolved over time as have conceptualizations used by scholars. We utilize PMSCs because the term is consistent with services and organizational structure of analyzed firms as well as the developing literature (see Fahn and Hadjer (2015), Grant (2013), Petersohn (2014, 2015) and Tzifakis and Huliaras (2015)). …”

mentioning

confidence: 99%