Utilizing the Institutional Analysis and Development Framework to Understand Quality Variation in Mixed Economies for Toll Goods: The Importance of Governance Structures
30 Pages Posted: 3 Sep 2010
Date Written: August 13, 2010
Abstract
This paper utilizes the Institutional Analysis and Development (IAD) Framework to analyze the delivery of toll goods with post-experience information asymmetry to argue for the adoption of governance structure as the classification criterion rather than sector. Toll goods are goods for which it is possible to exclude people from using the good but the good is consumed jointly with others. This paper focuses particularly on toll goods with post-experience information asymmetry, such as child care and nursing home care, for which quality is difficult to monitor even after the service has been received. The main focus of the paper is to advance our understanding of mixed economies of for-profit, nonprofit, and public providers that emerge in the market for toll goods. Research to date uses sector as the distinguishing criterion to group providers for analysis; however, I argue that governance structure provides a superior criterion precisely because it captures the subsector variation in decision-making that ultimately impacts the quality of services delivered.
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