Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster

• Main Authors: Flyvbjerg, Bent, Garbuio, Massimo, Lovallo, Dan
• Format: Journal Article
• Language: English
• Published: 28-03-2013
• Subjects: Quantitative Finance - General Finance
• DOI: 10.48550/arxiv.1303.7403

California Management Review, vol. 51, no. 2, Winter 2009, 170-193 The Economist recently reported that infrastructure spending is the largest
it is ever been as a share of world GDP. With $22 trillion in projected
investments over the next ten years in emerging economies alone, the magazine
calls it the "biggest investment boom in history." The efficiency of
infrastructure planning and execution is therefore particularly important at
present. Unfortunately, the private sector, the public sector and
private/public sector partnerships have a dismal record of delivering on large
infrastructure cost and performance promises. This paper explains why and how
to solve the problem.