2018
DOI: 10.1016/j.jpubeco.2018.04.004
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Competition in public service provision: The role of not-for-profit  providers

Abstract: 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 whether entry by for-profit providers is good for consumers despite the problem of unobserved quality. The model generates three key policy-relevant insights. First, by developing a novel approach to compe… Show more

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Cited by 21 publications
(5 citation statements)
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References 43 publications
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“…Assessments of the impact of such reforms primarily focus on their success of delivering aggregate quality or efficiency improvements that benefit all (Besley & Malcomson, 2018; Bergman et al., 2016; Cooper et al., 2018). However, such reforms are often accompanied by concerns about the way such benefits are distributed across different types of patients.…”
Section: Introductionmentioning
confidence: 99%
“…Assessments of the impact of such reforms primarily focus on their success of delivering aggregate quality or efficiency improvements that benefit all (Besley & Malcomson, 2018; Bergman et al., 2016; Cooper et al., 2018). However, such reforms are often accompanied by concerns about the way such benefits are distributed across different types of patients.…”
Section: Introductionmentioning
confidence: 99%
“…7 See, e.g. Hart et al (1997), Bajari and Tadelis (2001), Hart (2003), Besley et al (2001), Bajari et al (2014), Besley and Malcomson (2018), Hart (2017), Bennett and Iossa (2006a), Müller and Schmitz (2016), Chen and Chiu (2010), Hoppe and Schmitz (2013) among others.…”
Section: Project Timelinementioning
confidence: 99%
“…A large body of theoretical literature suggests that for‐profits and non‐profits have different objectives (an example which focuses on public service providers is Besley & Malcomson, 2018). Early empirical studies provided mixed evidence for quality differences between for‐profit and other hospitals 2 .…”
Section: Introductionmentioning
confidence: 99%