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from Part III - Outcome-Based Theories: On the Virtues and Vices of Public Provision as a Means to Promote Efficiency and Justice
Published online by Cambridge University Press: 27 August 2021
The financial information about a financial entity is asymmetrically distributed among those who contract with it. Whether the entity is a publicly traded corporation or a nonprofit state hospital, those parties of the inner circle of the entity, for example the entity’s management, possess information about the financial stability of the entity and its available resources, whereas those of the outside circle, who in many cases finance the entity or cohesively depend on its services, for example the entity’s patients/customers and workers/suppliers, lack information about its commitments, available resources or the use thereof.
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