Information gaps in the market for social services: retirement homes in the Czech Republic

Issue: 3/2019

Iveta Vrabková

Department of Public Economics,VŠB – Technical University of Ostrava, Sokolská 33, 701 21 Ostrava, Czech Republic, iveta.vrabkova@vsb.cz.

Izabela Ertingerová

VŠB-TU of Ostrava, Faculty of Economics, Department of Public Economics, Czech republic, izabela.ertingerova@vsb.cz;

Roman Vavrek

VŠB-TU of Ostrava, Faculty of Economics, Department of Public Economics, Czech republic, roman.vavrek@vsb.cz

The research address a partial issue of market failure in the form of information asymmetry. Within the public sector, social services, together with health services, belong to typical sectors where the information superiority of supply against demand is detected. The presence of asymmetrical/imperfect information within the social care has a significant effect on retired people who demand the services of retirement homes, and this effect occurs before as well as during the consumption of this service. The paper aims to identify and evaluate the information gaps of 159 official websites of retirement homes in the Czech Republic that are related to the supply of offered services. The evaluated websites of the retirement homes were selected in a way including all three types of the legal form of retirement homes (semi-budgetary units of regions, limited liability companies, church legal entities) that are present in this category of social services in the Czech Republic. The multi-criteria evaluation, performed by using the TOPSIS method, included 14 types of information (criteria). The TOPSIS method is based on the selection of the variant that is the closest one to the ideal variant and that is characterized by a vector. The results show that retirement homes insufficiently disclose several types of information. These include the conditions of acceptance into the retirement home, annual reports, some types of contact information, internal rules of the home, and the electronic link for the communication with the retirement home. In relation to the evaluation of the total level of 14 types of information being disclosed on the websites of retirement homes, it was revealed that 3% of them achieve an excellent level, 30% achieve a lesser than excellent level, 60% achieve a low level, and 7% of retirement homes achieve a very low level.

Pages: 
175-191
DOI: 10.2478/revecp-2019-0010
JEL: H41, D82, L33
Keywords: information asymmetry, multi-criteria evaluation, social service, TOPSIS method, websites of retirement homes
References: 

ARDIELLI, E., BEČICA, J. (2018). Multi-criteria Evaluation of the State of Professional Theatres in the Czech Republic in Terms of Mixed Public Goods Provided to the Citizens. Review of economic Perspectives, 18 (2), 156-176. DOI:10.2478/revecp-2018-0009

ARROW, K. J. (1963). Uncertainty and the Welfare Economics of Medical Care. The American Economic Review, 53 (5), 941-973.

Association of Social Services Providers of the Czech Republic. (2010). Komparace služeb sociální péče o seniory. Tábor: Association of Social Services Providers of the Czech Republic. [online]. Retrieved January 21, 2018, from http://www.apsscr.cz/files/projekty/island_komparace.pdf

BARILE, S., SAVIANO, M. & POLESE, F. (2014). Information asymmetry and co-creation in health care service. Australasian Marketing Journal, 22 (3), 205-217. DOI: 10.1016/j.ausmj.2014.08.008

BLOOM, G., STANDING, H.  & LLOYD, R. (2008). Markets, information asymmetry and health care: towards new social contracts. Social Science & Medicine, 66(10), 2076-2087. DOI: 10.1016/j.socscimed.2008.01.034

BOYER, M., MAHENC, P., MOREAUX, M. (2003). A symmetric information and product differentiation. Regional Science and Urban Economics. 33(1), 93-113. DOI: 10.1016/S0166-0462(01)00108-9

Czech Statistical Office. (2017). Senioři v mezinárodním srovnání 2017. [online]. Retrieved March 6, 2019, from https://www.czso.cz/csu/czso/seniori-v-cr-v-datech-2017

Czech Social Security Administration. (2018). Důchodová statistika.  [online]. Retrieved March 6, 2019, from https://www.cssz.cz/web/cz/duchodova-statistika#section_0

FRANK, R.G., SALKEVER, D. S. (1994). Nonprofit Organizations in the Health Sector. Journal of Economics Perspectives, 8(4), 129-144. DOI: 10.1257/jep.8.4.129

HAAS-WILSON, D. (2001). Arrow and the Information Market Failure in Health Care: The Changing Content and Sources of Health Care Information. Journal of Health Politics, Policy and Law, 26(5), 1031-1044. DOI: 10.1215/03616878-26-5-1031

HOLASOVÁ MALÍK, V. (2014). Kvalita v sociální práci a sociálních službách. Praha: Grada Publishing, a. s.

HUANG, C., KU, Y. (2011). Effectiveness of Social Welfare Programmes in East Asia: A Case Study of Taiwan. Social Policy & Administration, 45(7), 733-751. DOI: 10.1111/j.1467-9515.2011.00794.x

JABLONSKÝ, J., DLOUHÝ, M. (2015). Modely hodnocení efektivnosti a alokace zdrojů. Praha: Professional Publishing.

JANÍČKO, M, KOUBEK, I. (2012). Informační asymetrie a systém dvojího standardu ve vztahu zdravotník-pacient. Politická ekonomie, 60 (3), 362-379. DOI: 10.18267/j.polek.854

JUREČKA, V. a kol. (2018). Mikroekonomie. Praha: Grada Publishing, a. s.

KERŠUIENE, V., ZAVADSKAS, E. K., TURSKIS, Z. (2010). Selection of rational dispute resolution method by applying new step‐wise weight assessment ratio analysis (Swara), Journal of Business Economics and Management. 11, 1611-1699, DOI: 10.3846/jbem.2010.12

KUBALČÍKOVÁ, K., HAVLÍKOVÁ, J. (2016). Current Developments in Social Care Services for Older Adults in the Czech Republic: Trends Towards Deinstitutionalization and Marketization. Journal of Social Service Research. 42(2), pp. 180-198. DOI: 10.1080/01488376.2015.1129014

McCAUGHEY, D., BRUNING, N, S. (2010). Rationality versus reality: the challenges of evidence-based decision making for health policy makers. Implementation Science, 5 (39), 1-13. DOI: 10.1186/1748-5908-5-39

MERTL, J. (2008). Přístupy k hodnocení efektivnosti sociálních služeb v národním hospodářství. Praha: Výzkumný ústav práce a sociálních věcí.

Ministry of Labour and Social Affairs of the Czech Republic. (2019). Registr poskytovatelů sociálních služeb. [Register of Social Service Providers]. Prague: Ministry of Labour and Social Affairs. http://iregistr.mpsv.cz/socreg/vitejte.fw.do;jsessionid=7795B270B4189FB75A3035CEC13DB7E2.node1?SUBSESSION_ID=1555242256564_1

NETTEN, A., DAVIES, B. (1990). The Social Production of Welfare and Consumption of Social Services. Journal of Public Policy, 10(3), 331-347. DOI: 10.1017/S0143814X00005857

OLSON, D. L. (2004). Comparison of Weights in TOPSIS Models. Mathematical and Computer Modelling, 40(7-8), 721-727. DOI: 10.1016/j.mcm.2004.10.003

PRŮŠA, L. (2007). Ekonomie sociálních služeb. Praha: ASPI, a. s.

PRŮŠA, L., HORECKÝ, J. (2012). Poskytování služeb sociální péče pro seniory v České republice a ve Švýcarsku: mezinárodní komparace. Tábor: Association of Social Services Providers of the Czech Republic. [online]. Retrieved Februrary 2, 2019, from http://www.horecky.cz/images/1345613843_komparace-c-s.pdf

PRŮŠA, L. (2013). Ekonomická efektivity zajišťování péče o příjemce příspěvku na péči. Praha: Výzkumný ústav práce a sociálních věcí.

ROBINSON, J. C. C. (2001). The End of Asymmetric Information. Journal of Health Politics, Policy and Law 26(5), 1045-1053.  DOI: 10.1215/03616878-26-5-1045

ROBLIN, B., DEBER, R., KULUSKI, K., SILVER, M. P. (2019)  Ontario's Retirement Homes and Long-Term Care Homes: A Comparison of Care Services and Funding Regimes. Canadian Journal on Aging. Article in Press. DOI: 10.1017/S0714980818000569

SEIFERT, A., SCHELLING, H. R. (2018). Attitudes Toward Aging and Retirement Homes Before and After Entry Into a Retirement Home. Journal of Housing for the Elderly. 32 (1) p. 12-25. DOI: 10.1080/02763893.2017.1393484

SCHAAD, M. (1998). Neziskové organizace v ekonomické teorii. Brno: Masarykova univerzita.

SOJKA, M. (2002). Asymetrické informace a jejich důsledky pro metodologii ekonomie. Ekonomika, právo a politika, CEP: Sborník č. 19 "Investiční pobídky". [online]. Retrieved Februrary 11, 2019, from http://www.cepin.cz/cze/kniha.php?ID=23

STREIMIKIENE, D., BALEZENTIS, T., KRISCIUKAITIENE, I., BALEZENTIS, A. (2012). Prioritizing sustainable electricity production technologies: MCDM approach, Renewable & Sustainable Energy Reviews. 16(5), 3302–3311. DOI: 10.1016/j.rser.2012.02.067

VARIAN, H. R. (2014). Intermediate Microeconomics. New York: W.W. Norton & Company.

VAVREK, R. KOTULIČ, R., ADAMIŠIN, P. (2015). Evaluation of municipalities management with the topsis technique emphasising on the impact of weights of established criteria. Lex localis - Journal of Local Self-Government. 13(2) 249-264, DOI: 10.4335/249-264(2015)

VLACHANTONI, A. (2019). Unmet need for social care among older people. Ageing and Society. 39 (4), 657-684. DOI: 10.1017/S0144686X17001118

ZAVADSKAS, E. K., TURSKIS, Z., KILDIENE, S. (2014). State of art surveys of overviews on MCDM/MADM methods, Technological and Economic Development of Economy. 20(1), 165–179. DOI: 10.3846/20294913.2014.892037

ZAVADSKAS, E. K., MARDANI, A., TURSKIS, Z., JUSOH, A., NOR, K. (2016). Development of TOPSIS Method to Solve Complicated Decision-Making Problems: An Overview on Developments. From 2000 to 2015, International Journal of Information Technology & Decision Making. 15 1-38, DOI: 10.1142/S0219622016300019.