Answer to Question #68830 in Microeconomics for Matas

Question

Assess the argument that marketisation in the public sector has increased inequality and failed to address the problem of efficiency. I need to discuss this statement.

Answer 1

Marketisation is, as we define it, a change in transactions, through the introduction or intensification of price-based competition. Privatisation, by contrast, is a change in ownership in which non-state actors become increasingly involved in provision, usually through a transfer of assets (e.g. the sale of a hospital) or an increase in work contracted out. While the opening of the market to private-sector providers is an important aspect of healthcare marketisation, intense price-based competition and an expanding non-state sector do not always go together.
Reference:
https://www.sochealth.co.uk/2014/11/28/marketisation-lead-privatisation/