Perspectives for a New Welfare - Quality Competiton versus Price Competition: An 'Exit-Voice-Loyalty' Approach (Prospettive per un nuovo Welfare)
University of Cologne
Appunti di cultura e politica, Vol. 2, pp. 35-38, 2007
Exit, Voice, and Loyalty (A.O. Hirschman 1970) is a theoretical concept derived from the work of Albert O. Hirschman (1970) which is focused on two essential options in organizatios and products decline, being exit and voice.The basis concept is as follows: members of an organization, whether consumers , or any other kind of human grouping, have essentially two possible responses when they perceive that the producer/organization is demonstrating a decrease in quality or benefit to the consumer/member: they can EXIT (withdraw from the relationship-the standard market strategy); or, they can VOICE (attempt to repair or improve the relationship through communication of the complaint, grievance or proposal for change -the standard political strategy). In this article we apply this approach to welfare and health care markets, emphasizing the main importance of LOYALTY option (a mixed voice-exit strategy).
Note: Downloadable document is in Italian.
Number of Pages in PDF File: 7
Keywords: A.O. Hirschman, exit-voice-loyalty, Welfare State, Welfare Society
JEL Classification: A14, D11, D12, D21, D40, D61, D70, I30
Date posted: May 9, 2007
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