The Roles of Government and Nonprofit Suppliers in Mixed Industries
In what ways, if any, does the behavior of government and nonprofit organizations differ? This article examines evidence from two industries-nursing homes and mentally handicapped facilities-to determine whether government and nonprofit organization behavior differs in identifiable dimensions and, if it does, why the differences occur. Behavior is studied in terms of consumer access, as measured by the use of waiting lists, and output quality, as measured by consumer satisfaction. Considerable differential behavior is found across the two institutional forms, even though both governmental and nonprofit organizations are subject to the nondistribution constraint. By contrast with private firms, both types of organizations may not lawfully distribute profit or surplus to owners, managers, or trustees. The behavioral differences found are consistent with varied models, one of which is that government and nonprofit providers have different objective functions, trading off quality and consumer access differently as government pursues a supplier-of-last-resort objective function.
Volume (Year): 28 (2000)
Issue (Month): 4 (July)
|Contact details of provider:|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Richard Steinberg & Burton A. Weisbrod, . "Pricing and Rationing by Nonprofit Organizations with Distributional Objectives," IPR working papers 97-28, Institute for Policy Resarch at Northwestern University.
- Armen A. Alchian & Harold Demsetz, 1971.
"Production, Information Costs and Economic Organizations,"
UCLA Economics Working Papers
10A, UCLA Department of Economics.
- Alchian, Armen A & Demsetz, Harold, 1972. "Production , Information Costs, and Economic Organization," American Economic Review, American Economic Association, vol. 62(5), pages 777-95, December.
- Paul J. Devereux & Burton A. Weisbrod, . "Complaints and Geographic Mobility as Responses to Dissatisfaction with Public Services," IPR working papers 96-20, Institute for Policy Resarch at Northwestern University.
- Badelt, Christoph & Weiss, Peter, 1990. "Specialization, Product Differentiation and Ownership Structure in Personal Social Services: The Case of Nursery Schools," Kyklos, Wiley Blackwell, vol. 43(1), pages 69-89.
- Richard G. Frank & David S. Salkever, 1994. "Nonprofit Organizations in the Health Sector," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 129-144, Fall.
When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:28:y:2000:i:4:p:275-308. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications)
If references are entirely missing, you can add them using this form.