Dynamics models of privatization using agency theory

[Alan Graham]

Hi Rosa,

For sure youll want to look at the description of privatization analysis at
London Underground in Donna Mayo, Martin Callaghan and William Dalton,
"Aiming for restructuring success at London Underground" (System Dynamics
Review Volume 17 #2, 2001). The general
approach in this and other re-organization and privatization studies is to
understand how the organization does its work and competes, and therefor how
relevant decisions are being made. Then you look at how those decisions
change with a change of ownership, organization, incentives, etc. Its at
the decision level youd most naturally apply an agency-theoretic analysis.

Also, theres lots of energy market modeling that at least brushes up
against the question of how privatization impacts decision-making and market
behavior, particularly in Andy Fords work (see his Web page). I and PA
colleagues will be talking more about the impact of deregulating power
generation on investment decisions and market stability at this summers SD
conference.

cheers,

alan

Alan K. Graham, Ph.D.
PA Consulting Group

Alan.Graham@PAConsulting.com
One Memorial Drive, Cambridge, Mass. 02142 USA

[Rosa]

Hello collegues. We attemp to develop a systems dynamic model to explain
the privatization process of public firms in Europe. Our objective is to
apply Agency Theory (goal conflicts, opportunistic behaviour, assymetric
information, adverse selection, etc.)to model this ownership shift.
We would be grateful if you could point out previous models that have used
this framework because we are having problems in doing so.
Thankyou,
Rosa Mariz
From: Rosa <rosamp@mail2.udc.es>