Private Participation and its Discontents: Insights from Large-Scale Surveys

IMF Working Papers, October 16, 2024

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Canonical URL: Private Participation and its Discontents: Insights from Large-Scale Surveys

Authors: Silvia Albrizio, Hippolyte W. Balima, Bertrand Gruss, Eric Huang, Colombe Ladreit
Published: October 16, 2024
Series: IMF Working Papers
DOI: https://doi.org/10.5089/9798400290398.001

Purpose: Investigate public attitudes toward product market regulation (PMR) reforms aimed at fostering private participation and competition in two network sectors—electricity and telecommunications.
Sample: Large-scale surveys of 6,300 individuals in three emerging market and developing economies: Mexico, Morocco, and South Africa.
Methods:
- Analysis of the role of socioeconomic characteristics, beliefs, and perceptions in shaping support for PMR reforms.
- Randomized information treatments to test effects of raising awareness about costs of the status quo and benefits of PMR reforms.
- Examination of reasons for nonsupport among initially skeptical individuals and testing of tailored complementary and compensatory measures.

Predictors of reform support:
- Individual beliefs and perceptions—particularly those related to how policies work and market economy views—are major predictors of support for PMR reforms.
Impact of information treatments:
- Randomized information treatments that raise awareness about the costs of the status quo and the benefits of PMR reforms significantly increase public support.
Characteristics of skeptical respondents:
- Among initially skeptical individuals, societal concerns play a larger role in respondents’ reasons for nonsupport, consistent with models of social preferences.
- Offering tailored complementary and compensatory measures can further enhance support among those skeptical individuals.
Sectoral focus:
- The investigation centers on two network sectors: electricity and telecommunications.
Stated benefits of PMR reforms (as presented in the study):
- Enhanced productivity and lower prices.

Communication and information provision:
- Raising public awareness about the costs of the status quo and the benefits of PMR reforms can be an effective strategy to increase support for reforms.
Addressing social concerns:
- For initially skeptical populations, policies should account for societal concerns and social preferences.
Complementary and compensatory measures:
- Offering tailored complementary and compensatory measures can increase acceptability of PMR reforms among skeptical individuals.
Reform design:
- Reform strategies in electricity and telecommunications should combine clear information campaigns with tailored measures to mitigate social concerns to improve public backing.