Study on Non-market Value and the Analogy-market resource allocation of public service

Abstract

The aim of this paper is to create an analysis framework of the Analogy-market Resource Allocation of public services based on Non-market Value, which is helpful to resolve the problems that it's not only impossible to maximize the efficiency by marketing, but also causes the deviation from public values. Willingness to Pay or Accept (WTP/WTA) reveals the monetary value of public service assessed by citizens, so it can be measured as Non-market Values of public services and direct the resource allocation to get the similar efficiency to market's, in this paper which is defined as Analogy-market Resource Allocation. To decrease the errors of the measurement of Nonmarket Value, Discrete Choice Experiment (DCE) and Randomized Trials can be introduced in. On the supply of Analogy-market Resource Allocation, a marginal decision model based on Non-market Values was created by logistic regression to help the decision on the substitution from internal supply to external supply, and the quality control of the outsourced services based on Non-market Value is also proposed to implement; On the distribution, a mode of preliminary and secondary distribution is discussed, which aims to the priority of someone' s demands to be met who has higher Non-market Value to increase the consumer surplus and improve the efficiency. Finally, we analyze the improvement of efficiency brought by Analogy-market Resource Allocation, and choose the gradual change mode to ease the change resistance.