Prospettive per un nuovo Welfare

Perspectives for a new Welfare. Quality competiton versus Price competition: an 'Exit-Voice-Loyalty' approach

Tommaso Reggiani

MPRA Paper from University Library of Munich, Germany

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).

Keywords: A.O. Hirschman; exit-voice-loyalty; Welfare State; Welfare Society (search for similar items in EconPapers)
JEL-codes: D11 D20 D40 D71 D78 I00 (search for similar items in EconPapers)
Date: 2007-03-01, Revised 2007-03-01
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Published in Appunti di cultura e politica march-april (2007).vol. 2(2007): pp. 35-38

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