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Prospettive per un nuovo Welfare
[Perspectives for a new Welfare. Quality competiton versus Price competition: an 'Exit-Voice-Loyalty' approach]

Author

Listed:
  • Reggiani, Tommaso

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).

Suggested Citation

  • Reggiani, Tommaso, 2007. "Prospettive per un nuovo Welfare [Perspectives for a new Welfare. Quality competiton versus Price competition: an 'Exit-Voice-Loyalty' approach]," MPRA Paper 3113, University Library of Munich, Germany, revised 01 Mar 2007.
    • Handle: RePEc:pra:mprapa:3113
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    File URL: https://mpra.ub.uni-muenchen.de/3113/1/MPRA_paper_3113.pdf
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    References listed on IDEAS

    as
    1. Zamagni, Stefano, 2006. "L'economia come se la persona contasse: verso una teoria economica relazionale," AICCON Working Papers 32-2006, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
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    More about this item

    Keywords

    A.O. Hirschman; exit-voice-loyalty; Welfare State; Welfare Society;
    All these keywords.

    JEL classification:

    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • I00 - Health, Education, and Welfare - - General - - - General
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • D20 - Microeconomics - - Production and Organizations - - - General

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