ISSN:
1573-7888
Source:
Springer Online Journal Archives 1860-2000
Topics:
Sociology
Notes:
Abstract This paper investigates behavioural differences between non-profit organisations (NPOs), government organisations (GOs), and private market organisations (PMOs) as suppliers of nursery schools and retirement homes. On the basis of Weisbrod's undersupply model, the differentiated demand approach, and the public finance argument on the redistributive role of government, three hypotheses are theoretically specified and empirically tested: client differentiation; product differentiation; and price differentiation. NPOs and PMOs are shown to provide qualitatively better services and charge significantly higher prices than GOs. A clustering of clients with similar socio-economic backgrounds can be observed: GOs provide services for clients with lower economic and social status than private suppliers. GOs, holding more than two-thirds of the respective markets, are responsible for a ‘basic provision’ of services; they pursue distributional goals by producing services themselves; only rarely a ‘contracting out’ to private suppliers can be noted.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1007/BF01398493
