The Market Share of Nonprofit and For-profit Organizations in the Quasi-Market: Japan's Long-Term Care Services Market

Nobuko Kanaya, Hiromasa Takahashi and Junyi Shen

Annals of Public and Cooperative Economics, 2015, vol. 86, issue 2, 245-266

Abstract: This study uses a prefectural panel data set to examine the factors that affect the market share of nonprofit and for-profit providers in Japan's long-term care insurance system. Here, we focus on the market size and potential, asymmetric information, and the voluntarism environment. Our findings are as follows: (1) nonprofit organizations have a larger market share in areas with relatively unprofitable market conditions; (2) in the case of asymmetric information, experienced nonprofit providers, including government-driven and partial nonprofit providers, have a larger market share than citizen-driven nonprofit and for-profit providers; and (3) citizen-driven nonprofit providers have a larger market share in areas with more active civic voluntarism.

Date: 2015
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