Are satisfied citizens willing to pay more? Public sector consumerism as equitable social exchange

Brian K. Collins and Hyun Joon Kim

Public Money & Management, 2009, vol. 29, issue 2, 109-116

Abstract: Treating citizens like customers is a common prescription for public managers, but citizens differ from customers—citizens engage in equitable social exchange that balances individual preferences and assessments with willingness-to-pay for public amenities. This article examines whether citizen satisfaction with the quality and quantity of public amenities drives a citizen's willingness-to-pay for more public provision. Analysing data from a Texas municipality's satisfaction survey, the authors found that a decrease in satisfaction with the quantity of public amenities is associated with an increase in willingness-to-pay, but quality assessments show no relationship. Such behaviour highlights differences between customers and public sector consumers, but also suggests that a rational public is willing to contribute to the resolution of public supply problems.

Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:taf:pubmmg:v:29:y:2009:i:2:p:109-116

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DOI: 10.1080/09540960902768004

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