The effect of treating public services as commodities

Abstract

IMPACTThe case for competition and marketization of public services, though widely accepted in government, has been made through the application of formal economic reasoning rather than practical experience. Efficient market production relies on a process of defining services in terms which allow for competition, choice and the substitutability of tradable products. The evidence for this theoretical position is mixed at best. This article provides policy-makers, those commissioning services and practitioners with support in arguing for public services to be judged by different criteria.