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Do charities spend more on their social programs when they cooperate than when they compete?

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  • Crettez, Bertrand
  • Hayek, Naila
  • Zaccour, Georges

Abstract

We consider two charities whose revenues are used on advertising to attract market share, on administrative expenditures to manage the charity, and on program expenditures. Assuming a finite planning horizon, we seek to answer the following research question: are there any circumstances under which the charities devote less funds to their programs when they cooperate than when they compete? We obtain that this may well be the case for some parameter values. In particular, if the charities are myopic, that is, if they disregard the future benefits they can earn after the current planning cycle, then they will always spend less on their social programs when they cooperate than when they do not.

Suggested Citation

  • Crettez, Bertrand & Hayek, Naila & Zaccour, Georges, 2020. "Do charities spend more on their social programs when they cooperate than when they compete?," European Journal of Operational Research, Elsevier, vol. 283(3), pages 1055-1063.
    • Handle: RePEc:eee:ejores:v:283:y:2020:i:3:p:1055-1063
    DOI: 10.1016/j.ejor.2019.11.044
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    References listed on IDEAS

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    Cited by:

    1. Kopel, Michael & Marini, Marco A., 2022. "Mandatory disclosure of managerial contracts in NGOs," Journal of Economic Behavior & Organization, Elsevier, vol. 199(C), pages 65-85.
    2. Denis Kuzyutin & Nadezhda Smirnova, 2020. "Subgame Consistent Cooperative Behavior in an Extensive form Game with Chance Moves," Mathematics, MDPI, vol. 8(7), pages 1-20, July.

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