THE MARKET SHARE OF NONPROFIT AND FOR‐PROFIT ORGANIZATIONS IN THE QUASI‐MARKET: JAPAN'S LONG‐TERM CARE SERVICES MARKET

Abstract

ABSTRACT This study uses a prefectural panel data set to examine the factors that affect the market share of nonprofit and for‐profit providers in Japan's long‐term care insurance system. Here, we focus on the market size and potential, asymmetric information, and the voluntarism environment. Our findings are as follows: (1) nonprofit organizations have a larger market share in areas with relatively unprofitable market conditions; (2) in the case of asymmetric information, experienced nonprofit providers, including government‐driven and partial nonprofit providers, have a larger market share than citizen‐driven nonprofit and for‐profit providers; and (3) citizen‐driven nonprofit providers have a larger market share in areas with more active civic voluntarism.