Public-value failure: When efficient markets may not do

Research output: Contribution to journalArticle

212 Citations (Scopus)

Abstract

The familiar market-failure model remains quite useful for issues of price efficiency and traditional utilitarianism, but it has many shortcomings as a standard for public-value aspects of public policy and management. In a public-value-failure model, I present criteria for diagnosing values problems that are not easily addressed by market-failure models. Public-value failure occurs when: (1) mechanisms for values articulation and aggregation have broken down; (2) "imperfect monopolies" occur; (3) benefit hoarding occurs; (4) there is a scarcity of providers of public value; (5) a short time horizon threatens public value; (6) a focus on substitutability of assets threatens conservation of public resources; and (7) market transactions threaten fundamental human subsistence. After providing examples for diagnosis of public-values failure, including an extended example concerning the market for human organs, I introduce a "public-failure grid" to facilitate values choices in policy and public management.

Original languageEnglish (US)
Pages (from-to)145-161
Number of pages17
JournalPublic Administration Review
Volume62
Issue number2
StatePublished - Mar 2002
Externally publishedYes

Fingerprint

market
Values
market failure
public management
Public value
Efficient markets
monopoly
aggregation
transaction
assets
public policy
conservation
efficiency
resources
Public management
Market failure

ASJC Scopus subject areas

  • Marketing
  • Sociology and Political Science
  • Public Administration

Cite this

Public-value failure : When efficient markets may not do. / Bozeman, Barry.

In: Public Administration Review, Vol. 62, No. 2, 03.2002, p. 145-161.

Research output: Contribution to journalArticle

@article{2cbadd4d14cc44a7901ab23a9a5b471e,
title = "Public-value failure: When efficient markets may not do",
abstract = "The familiar market-failure model remains quite useful for issues of price efficiency and traditional utilitarianism, but it has many shortcomings as a standard for public-value aspects of public policy and management. In a public-value-failure model, I present criteria for diagnosing values problems that are not easily addressed by market-failure models. Public-value failure occurs when: (1) mechanisms for values articulation and aggregation have broken down; (2) {"}imperfect monopolies{"} occur; (3) benefit hoarding occurs; (4) there is a scarcity of providers of public value; (5) a short time horizon threatens public value; (6) a focus on substitutability of assets threatens conservation of public resources; and (7) market transactions threaten fundamental human subsistence. After providing examples for diagnosis of public-values failure, including an extended example concerning the market for human organs, I introduce a {"}public-failure grid{"} to facilitate values choices in policy and public management.",
author = "Barry Bozeman",
year = "2002",
month = "3",
language = "English (US)",
volume = "62",
pages = "145--161",
journal = "Public Administration Review",
issn = "0033-3352",
publisher = "Wiley-Blackwell",
number = "2",

}

TY - JOUR

T1 - Public-value failure

T2 - When efficient markets may not do

AU - Bozeman, Barry

PY - 2002/3

Y1 - 2002/3

N2 - The familiar market-failure model remains quite useful for issues of price efficiency and traditional utilitarianism, but it has many shortcomings as a standard for public-value aspects of public policy and management. In a public-value-failure model, I present criteria for diagnosing values problems that are not easily addressed by market-failure models. Public-value failure occurs when: (1) mechanisms for values articulation and aggregation have broken down; (2) "imperfect monopolies" occur; (3) benefit hoarding occurs; (4) there is a scarcity of providers of public value; (5) a short time horizon threatens public value; (6) a focus on substitutability of assets threatens conservation of public resources; and (7) market transactions threaten fundamental human subsistence. After providing examples for diagnosis of public-values failure, including an extended example concerning the market for human organs, I introduce a "public-failure grid" to facilitate values choices in policy and public management.

AB - The familiar market-failure model remains quite useful for issues of price efficiency and traditional utilitarianism, but it has many shortcomings as a standard for public-value aspects of public policy and management. In a public-value-failure model, I present criteria for diagnosing values problems that are not easily addressed by market-failure models. Public-value failure occurs when: (1) mechanisms for values articulation and aggregation have broken down; (2) "imperfect monopolies" occur; (3) benefit hoarding occurs; (4) there is a scarcity of providers of public value; (5) a short time horizon threatens public value; (6) a focus on substitutability of assets threatens conservation of public resources; and (7) market transactions threaten fundamental human subsistence. After providing examples for diagnosis of public-values failure, including an extended example concerning the market for human organs, I introduce a "public-failure grid" to facilitate values choices in policy and public management.

UR - http://www.scopus.com/inward/record.url?scp=0040076138&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0040076138&partnerID=8YFLogxK

M3 - Article

AN - SCOPUS:0040076138

VL - 62

SP - 145

EP - 161

JO - Public Administration Review

JF - Public Administration Review

SN - 0033-3352

IS - 2

ER -