Market-Based Policies, Public Opinion, and Information

Abstract

This paper experimentally examines the extent to which individuals support a market-based approach to public policy and how support levels respond to being presented with policy analysis indicating market-based policies are more cost-effective. The findings are as follows. First, absent being presented with any policy analysis, individuals tend to oppose a market-based approach to policy. Second, providing individuals with policy analysis, in which specific types of market-based policies are described as more cost-effective than non-market-based alternatives, increases general support for a market-based approach to policy. Third, the increase in support for a market-based approach to policy is larger when a nonpartisan research organization produces the analysis than a partisan organization.

Keywords: market-based policies; public opinion; policy analysis; information

JEL Classification: H1, D7