State socio-economic functions in contractual relations

The article is devoted to consideration of state contracts as a part of institutional analysis. Specific features of state contracts, related to the specificity of the state as counterparty are identified. The behavior of the state as a counterparty when concluding a transaction is not described in the same way as the behavior of an ordinary subject of market relations. The state, firstly, has broader powers, and secondly, it seeks to increase public welfare, rather than gaining "personal" benefits. However, because of the emergence of the "principal-agent" problem, the state order system is excessively bureaucra-tized. The problem of mistrust in the conclusion of state contracts and the consequences of this kind of distrust were analyzed, as well as ways to improve the public procurement system aimed at eliminating the problem of mistrust were suggested.

Keywords

Authors

References