Marketization reforms and co‐production: Does ownership of service delivery structures and customer language matter?

Author：Oliver James  Sebastian Jilke

Abstract

In public services that are tax funded, public goods are sometimes marketized by being delivered using private companies instead of public organizations. In addition, marketization reforms can entail service users being described as customers for the service rather than as citizens. We assess the effects of these aspects of marketization reforms on users' willingness to co‐produce public services. First, service delivery using private companies risks reducing users' willingness to co‐produce because firms cannot commit ex ante to not appropriate donated labour for private gain. Second, using customer‐oriented language risks reductions by priming individualistic market norms that lower prosocial motivation compared to citizen‐oriented language priming citizenship duty. Using three survey experiments in the United States, we find that delivery structures are not neutral. Private firms delivering local public services reduce users' willingness to co‐produce, although similar effects are not evident from primimg customer rather than citizenship thinking.