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Competition and the Strategic Choices of Churches

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  • Adam D. Rennhoff
  • Mark F. Owens

Abstract

In this paper, we examine how the decisions of churches are impacted by the decisions of rival churches. Using a novel data set of Christian churches in two suburban Nashville, TN counties, we estimate a model of strategic interaction based on empirical models of discrete games. We focus on a church’s decision of whether or not to provide a week-day child care program. Empirical evidence indicates that churches are more likely to offer a service when a nearby same-denomination church offers it, but are less likely to offer the service if a nearby different-denomination church offers the service. This suggests that churches may feel pressure to match the services offered by same-denomination churches. Using our estimates, we conduct counterfactual simulations which indicate that a new church’s entry may increase or decrease the number of churches offering child care depending on the size and denomination of the entrant. Additional counterfactual simulations indicate that in some cases, increases in population may decrease the probability of a church offering child care.

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Bibliographic Info

Paper provided by Middle Tennessee State University, Department of Economics and Finance in its series Working Papers with number 201011.

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Date of creation: Jun 2010
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Handle: RePEc:mts:wpaper:201011

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Web page: http://www.mtsu.edu/~berc/working/Economics_Working_Papers.html
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Keywords: nonprofits; churches; strategy; discrete games;

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  13. Andrew Cohen & Beth Freeborn & Brian McManus, 2013. "Competition And Crowding Out In The Market For Outpatient Substance Abuse Treatment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 54(1), pages 159-184, 02.
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Cited by:
  1. Lapo Filistrucchi & Jens Prufer, 2014. "Faithful Strategies: How Religion Shapes Nonprofit Management," Working Papers - Economics wp2014_01.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.

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