Market competition and regulatory compliance in public, non-profit, and for-profit organizations

While public, non-profit, and for-profit organizations are all subject to government regulations, little research examines how public and non-profit organizations respond to such constraints, particularly when facing market competition. This article examines how market competition affects regulatory compliance across sectors, using panel data for U.S. nursing homes. The findings suggest that public and non-profit facilities tend to comply more with regulations and improve service quality under increased competition. In contrast, competition among for-profit facilities appears to decrease regulatory compliance and lower service quality. This study advances our understanding of cross-sector differences in the regulatory process and provides implications for policy implementation.