"Privatization Paradox: Insights from Public Choice Theory"

The purpose of this research is to evaluate the process of privatization through the lens of public choice theory. This analytical study examines current sourcesfrom libraries and institutions, as well as notes from interviews with economists, lawyers, psychologists, and other scholars. Public choice theory posits thatpoliticians, being ordinary people, act based on self-interest and rent-seeking behaviors. An example of rent-seeking is the Solyndra case, where legislationfavored a few at the expense of many. The results indicate that rent-seeking, lack of collective decision-making, public resistance, regulatory non-compliance,and other factors contribute to the failure of privatization initiatives. This study explores the fundamental concepts, challenges, and shortcomings of privatizationfrom the public choice perspective and discusses the conditions and tools necessary for successful privatization according to this theory

Keywords:

Privatization , Public choice theory , Economic theory , rent-seeking