Human Centric Design in Smartcity Technologies: Implications for the Governance, Control and Performance Evaluation of Mobility Ecosystems

Governance can be understood as the system by which actors in
society are directed and controlled. Given the trinity "Institution,
Market and Organization" a pressing question is: which governance
structure minimizes the transaction costs in governing and controlling in the build and service design for organizations similar
to a city? We investigate the notion of the governance of common
goods and the problem of organizations - how or when to balance
control mechanisms. As Tirole observes there is a need to explicate
incentives for all stakeholders on the basis of some measure of
aggregate welfare of all stakeholders. In this paper we develop a
mathematical model to explicate information needs in a bilateral
contract and use these insights in the case study, initialized and inspired by the procurement process of transport services at the care
institution in the Netherlands in 2020 and 2021. Our results show
that the information problem emerges when the object of what
is exchanged between two parties is not considered as the unit of
analysis. Once we understand the nature of the bilateral exchange
relationship then we are able to consider the consequences of the
control loss causing transaction costs due to conflicting objectives,
moral hazard, adverse selection, opportunism and so on.