Allocation Decisions: Who ought to get what

1
Allocation Decisions Who ought to get what

• Highly Related to Target Markets
• Equity requires all segments be considered!
• Three Stages
• Delineation
• The allocative criteria of who gets the service
• Identification
• Is the market measurable and accessible
• Tailoring the Market Mix for each segment

2
Concerns over Allocation Decisions

• Scarcity of Resources
• No new money, to get, you have to take!
• Who gets to keep what and who loses what?
• Who are the winners and losers?
• Are areas discriminated against?
• Concept of Equity (not the same as equality)
• Fairness, not sameness

3
Alternative Equity Models

• Elected Representation Equitable??
• Vertical (first three) vs. Horizontal
• Treat different, differently vs. treat same, same
• 1) Equal Opportunity
• Same amount to all citizens
• Based on size (ie, 1 park per 500 residents)
• 2) Compensatory Equity
• Disadvantaged get extra (intensity of need)
• Benefits relief of poverty greater equality of
  opportunity erosion of Class System

4
Other Alternatives

• Market Equity (based on private sector)
• Allocate in proportion to taxes/fees produced
• If you want more pay more fees!
• Most efficient, but ignores social issues of
  equity
• Demand (NOT an equity model)
• Allocate based on consumption or complaints
• Unpredictable and inconsistent
• Usually, the rich get richer in this model!

5
Which Model Should be Used?

• Due to Subjective Differences none best
• Wealthy Market Equity
• Middle-Class Equal Opportunity
• Poor Compensatory
• Three Basic Considerations
• Equal opportunity should be point of departure
• Deviations encouraged if benefit disadvantaged
• Should be a floor services cant fall below

6
Who Determines Whats Equitable

• Governmental Model Equitable?
• Because elected represent all?
• Govt models change only under crisis
• Role of Administrators
• More decisions by Administrators than Elected!
• Decisions are based on rules from Administrators
• Role of Street-Level Bureaucrats
• Public employees who provide guidelines

7
How Does Equity Relate to MKT?

• Performance measures for social agencies
• Equity, Effectiveness, Efficiency
• Should be considered in the above order!
• Too often efficiency is the most important
• Understand Figures 7.3 7.4 (p. 169-170)!