Perceptions of Public and Private Performance: Evidence from a Survey Experiment

Media, politicians, and reform proponents frequently assert that public sector organizations are inefficient and burdened by administrative procedures. But are negative stereotypes of the public sector reflected in people's perceptions of public service provision? Given the methodological challenges of isolating the perception of publicness from other factors related to public organizations, little is known about whether public organizations have a negative image. The authors use a survey experimental design to isolate the effect of publicness on perceptions of the performance of hospitals. The results suggest that public sector organizations have a negative image on productivity‐related aspects of performance but not on normative aspects of performance. As this article is a randomized experiment, it provides strong evidence regarding the causal nature of the relationship between publicness and perceptions of performance. Implications for researchers aiming to understand these mechanisms and for public managers concerned about the image of their organization are discussed.