Behavior of Urban Public Authorities Operating in Competitive Markets

Abstract

An old administrative adage has reemerged in public organizational studies that views government agencies as corporate-like in behavior and policy making. The new twist in this enterprise thesis is the emphasis placed on competitive market conditions in determining how policy outcomes are patterned to favor some stakeholders over others. Applying regression analysis to a sample of 42 urban transit agencies, the study finds market conditions pose significant influence on skewing policy outcomes but do not necessarily cause a trade-off harmful to social-program clients. One implication is that introducing market conditions into the environment of public agencies may be a superior reform option to privatization.