This study uses the Cost, Qual ity, and Child Out comes in Child Care Cen ters data set to inves ti gate the view that in a mixed indus try pro vid ing com plex ser vices to poorly informed cus tom ers, for-profit pro duc ers pro vide lower qual ity than non profit pro duc ersCen ter child care pro vi sion in the United States occurs in a mixed indus try with roughly 60% non profit agen cies (includ ing a few that are pub licly operated) and 40% for-profit busi nesses. This study con trib utes to the body of research on sec toral dif fer ences in qual ity per for mance in the child careNote: This re search has been funded by a grant from the As pen In sti tute and is a fol low-up on Cost, Qual ity, and Child Out comes in Child Care Cen ters. That re search was con ducted by a team of schol ars in clud ing the cur rent au thors and Mar ga ret Burchinal, Donna Bryant, Rich ard Clifford, Debby Cryer, Mary Culkin, Carollee Howes, Sharon Lynn Kagan, H. Naci Mocan, Leslie Phillipsen, El len S. Peisner-Feinberg, and Jean Rustici and funded by the Car ne gie Cor po ra tion, Wil liam T. Grant Foun da tion, The JFM Foun da tion, The Da vid and Lucile Packard Foun da tion, the Pew Char i ta ble Trusts, the USWEST Foun da tion, and an other anon y mous foun da tion. We wish to thank Dan iel I. Rees and Laura Argys for their sug ges tions at var i ous stages of the re search and Barbara Bergmann, Bur ton Weisbrod, and the anon y mous re view ers of Non profit and Vol untary Sec tor Quar terly for con struc tive crit i cisms of ear lier drafts of this ar ti cle. An ear lier ver sion of this ar ti cle was pre sented at the ARNOVA con fer ence, Se at tle, WA, No vem ber 1998.