Choice and control: The personalisation of disability care via a quasi-market structure in Australia

The still-nascent Australian National Disability Insurance Scheme (NDIS) is funding the delivery of personalised disability care via a quasi-market structure primarily to achieve consumer choice and control. Budget personalisation requires access to product variety and, in a nascent market, this raises the question as to the role policy may have in stewarding quasi-markets, in turn raising further questions regarding the nature of the quasi-market structure likely to emerge through the NDIS with concomitant implications for social welfare. Here we use the economics literature on product variety to: (i) assess the extent of personalisation likely to be provided by the quasi-market; (ii) elucidate the quasi-market structure likely to emerge as a consequence; and, (iii) quantify quasi-market depth. The results are then used to elucidate options for identifying thin markets within the NDIS’ administrative structure of 76 districts and three support classes.

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