ABSTRACT
The public implementation of a social policy causes problems in many countries. It is often accused of being inefficient and not sufficiently customer orientated. In the Netherlands, an attempt has been made to improve this situation through the introduction of a form of market-based setting. Various studies have also explored the options for a market-based approach to the implementation of social policy. In particular, these studies examine the pros and cons of the market-based as opposed to the statecontrolled implementation of social schemes. However, little has been written so far about the phase in wh ich a state-controlled context is transformed into a market context, even though this transition phase can have a major influence on the ultimate form and effectiveness of the market. This chapter therefore discusses this transition phase and the influence it could have on competition in the market.
