Competition in public service provision: The role of not-for-profit providers
Competition in public service provision: The role of not-for-profit providers
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DOI:
10.1016/j.jpubeco.2018.04.004
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发表时间:
2018-06-01
影响因子:
9.8
通讯作者:
Malcomson, James M.
中科院分区:
文献类型:
--
作者:
Besley, Timothy;Malcomson, James M.
With public services such as health and education, it is not straightforward for consumers to assess the quality of provision. Many such services are provided by monopoly not-for-profit providers and there is concern that for-profit providers may increase profit at the expense of quality. This paper explores the implications of entry by for-profit providers when there is unobserved quality. The model generates three key policy relevant insights. First, by developing a novel approach to competition between different organizational forms, it frames the relevant trade-offs precisely. Second, it shows the value of keeping an incumbent not-for-profit as an active provider. Third, it characterizes the optimal payment (or voucher value) to an entrant for each consumer who switches in a way that can be applied empirically. (C) 2018 Elsevier B.V. All rights reserved.