ABSTRACT

Looking solely at the extent of their budgets, public authorities exercise great market power through their purchasing activities. But in order to analyse the market it is not sufficient to know about the market power of the public sector as one actor; we need to know about the other actors and factors influencing the market. Figure 10.1 shows the most important factors in a market. The public sector can be found in this picture in the ‘customers’ group as well as as part of the state.