Perspectives for a New Welfare - Quality Competiton versus Price Competition: An 'Exit-Voice-Loyalty' Approach (Prospettive per un nuovo Welfare)

Appunti di cultura e politica, Vol. 2, pp. 35-38, 2007

7 Pages Posted: 9 May 2007  

Tommaso Reggiani

LUMSA University

Abstract

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).

Notes: Downloadable document is in Italian.

Keywords: A.O. Hirschman, exit-voice-loyalty, Welfare State, Welfare Society

JEL Classification: A14, D11, D12, D21, D40, D61, D70, I30

Suggested Citation

Reggiani, Tommaso, Perspectives for a New Welfare - Quality Competiton versus Price Competition: An 'Exit-Voice-Loyalty' Approach (Prospettive per un nuovo Welfare). Appunti di cultura e politica, Vol. 2, pp. 35-38, 2007. Available at SSRN: https://ssrn.com/abstract=984839

Tommaso Reggiani (Contact Author)

LUMSA University ( email )

Via della Traspontina
Roma, Rome 00192
Italy

HOME PAGE: http://https://sites.google.com/site/tommasoreggiani/

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