Co-Production and Managed Competition in Mixed Quasi-markets
AbstractIn this paper, we provide a very simple model to shed light on the issue of managed competition in mixed quasi-markets (i.e. regulated markets in which social and for-profit firms coexist). In doing this, we consider the literature on mixed oligopolies as a reasonable reference point and try to enrich it with the idea of quasi-market. Firstly, our results show that social firms serve the relatively richer portion of the population. Only relatively poor consumers buy units of service from the profit-oriented firm. Secondly, the socially-preferable form of managed competition is to introduce coproduction practices and, hence, to raise profit-oriented firm's production costs. The diffusion of coproduction paradigms ensures maximal service quality and eliminates mark-up from the market.
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Bibliographic InfoPaper provided by Dipartimento Scienze Economiche, Universita' di Bologna in its series Working Papers with number wp727.
Date of creation: Feb 2011
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Other versions of this item:
- Delbono, Flavio & Lanzi, Diego, 2011. "Co-Production and Managed Competition in Mixed Quasi-markets," AICCON Working Papers, Associazione Italiana per la Cultura della Cooperazione e del Non Profit 82-2011, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-02-12 (All new papers)
- NEP-BEC-2011-02-12 (Business Economics)
- NEP-COM-2011-02-12 (Industrial Competition)
- NEP-MIC-2011-02-12 (Microeconomics)
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