Sector Bias and the Credibility of Performance Information: An Experimental Study of Elder Care Provision

Abstract

Reporting government performance to the public is key tool in improving accountability. Some evidence, however, has shown that individuals’ anti‐public sector biases may distort performance information about public organizations. Using an experimental vignette on U.S. nursing homes, this study fills four gaps in the literature: (1) the need to include nonprofit organizations rather than just public and for‐profit, (2) consideration of the credibility of the source of performance information, (3) the use of simple commonly used performance metrics, and (4) the willingness to use services as a performance dimension. We find the public has a general but modest anti‐for‐profit sector bias in nursing home care with nonprofits perceived the most positively. Sector biases generally disappear when clear performance data are presented. The credibility of the source matters, and respondents' willingness to use organizational services is more sensitive to both sector bias and performance ratings than are performance measures. Practitioner Points In the field of long‐term care, individuals have no anti‐public sector bias, and they have more favorable views of nonprofit organizations than for‐profit organizations. Perceived sector bias disappears when simple and unambiguous performance information is introduced. The source of performance information matters: individuals perceive the information from government and nonprofit sources as more credible than that from for‐profit sources. A high degree of credibility amplifies the effect of performance information in shaping individuals’ evaluations of public services.

Neural Bases of Sector Bias in Perceptions of Public Versus Private-Sector Service Performance

“…In this respect, opinions are divided. Some studies report the existence of an antipublic-sector bias (Marvel, 2015), while others have observed opinions in favour of the public sector (Meier et al, 2022). According to Meier et al (2020), the direction and degree of bias depends on the activity sector in question.…”

“…Nevertheless, they found favourable biases towards nonprofit and public performance, and negative ones towards for-profit homes, when no performance information was given. The findings of Davis (2020) in the field of university services and those of Meier et al (2022) for nursing homes in the US, confirm the existence of an anti-for-profit-sector bias, with nonprofits and the public sector being perceived more favourably.…”

“…Several studies have proposed alternative explanations for the absence of unanimity regarding sector bias, such as dependence on the service context (Hvidman & Andersen, 2016), the influence of prior beliefs (Baekgaard & Serritzlew, 2016), the availability of corroborated and publicly-known data regarding private sector inefficiency (Meier et al, 2022) or even the evaluation of sector bias with the provision or otherwise of performance information (Meier, 2020). Most studies, nevertheless, confirm the existence of sector bias, although none have attempted to offer a deeper understanding of the psychological reasons for its existence.…”

“…However, other studies not only have found no evidence of such a bias but have confirmed the existence of an anti-for-profit prejudice when the private sector is sub-divided into nonprofit and for-profit (Meier et al, 2019). For example, Meier et al (2022), Meier and An (2020) and Hvidman and Andersen (2016) all support this view and argue that in certain sectors or institutions (such as universities or hospitals) there is not only a positive perception of public performance (as indexed by efficiency, justice and fairness), but also a negative evaluation of the performance of the private sector (i.e., an anti-private-sector bias).…”

Variations on a Theme of Resignation: Idling by, Backpedaling, or Driving Forward?

“…Their study highlights the very complicated set of performance expectations facing public organizations in today's volatile environment. Meier, et al (2022) utilize an experimental vignette on U.S. nursing homes to address four gaps in the literature: (1) the need to include nonprofit organizations, (2) consideration for the credibility of the performance information source, (3) the use of simple commonly used performance metrics, and (4) the willingness to use services as a performance dimension. Their research reveals that the public has a general but modest anti-for-profit sector bias in nursing home care with nonprofits perceived the most positively; however, sector biases generally disappear when clear performance data are presented.…”