The Three Exit,Three Voice and Loyalty
Framework:A Test with Survey Data on
Local Services
Keith Dowding Peter John
Australian National University
and
London School of Economics and Political Science
University of Manchester
The article presents a modified Hirschman framework with three types of exit: moving location; moving
from the public to a private sector provider;and moving between public sector providers;and three types
of voice: private voice (complaining about private goods); voting; and collective action. Seven hypotheses
are generated from this framework. The article then presents evidence from the first round of an online
survey examining citizen satisfaction with public services and the relationship between exit and voice
opportunities.We find dissatisfied people are more likely to complain privately,vote and engage in other
forms of collective participation; but only a weak relationship exists between dissatisfaction and geo-
graphical exit.We find some evidence that the exit–voice trade-off might exist as more alert consumers
are more likely to move from the public to the private sector and those ‘locked in’ are more likely to
complain than those who have outside options. Overall the results tend to corroborate the hypotheses
drawn from the modified Hirschman framework.
If ‘competition’ was the mantra for public service reform of the Thatcher gov-
ernments, then ‘choice’ had the same function for Blair’s. The two terms cover
much the same territory, though each emphasises different aspects of a process
supposed to provide efficiency in public services. The idea, of course, is that the
private sector is more efficient than the public sector because of the discipline of
competition. Firms that do not produce the products people want at the price
they want are driven out of business by those that do.Competition provides the
incentives to cut costs in order to drive down prices,and to produce the products
people want:so both productive and allocative efficiency are driven by market
competition. Consumer choice is the motor that drives competition, along with
free entry into the industry which is supposed to ensure that multiple firms
compete.Shifting the emphasis away from the competitive aspects of the process
to the choice features softens the driving edge and concentrates attention on to
the consumer side. It emphasises that people can be in control of their public
services rather than being serviced as clients by a rule-driven bureaucracy. Choice
also fits nicely with the idea of freedom as control which has greater modern
resonance than the terms equality or welfare.
There has always been some tension in the idea of introducing market compe-
tition into public service provision. The reason we have public provision for some
doi: 10.1111/j.1467-9248.2007.00688.x
POLITICAL STUDIES: 2008 VOL 56, 288–311
© 2007 The Authors. Journal compilation © 2007 Political Studies Association