Brothers in Alms? Coordination Betwen Nonprofits on Markets for Donations
AbstractMission-driven nonprofit organizations compete for donations through fundraising activities. Such competition can lead to inefficient outcomes, if nonprofits impose externalities on each others' output. This paper studies the sustainability of fundraising coordination agreements, using a game-theoretic model of coalition formation. Three key characteristics determine the stability of cooperation: (i) the alliance formation rule, (ii) the extent to which fundraising efforts are strategic complements/substitutes, and (iii) whether deviation from the agreements is by an individual or by a group of nonprots. We also characterize necessary and su¢ cient conditions for the stability of Pareto-optimal full coordination in fundraising.
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Bibliographic InfoPaper provided by University of Namur, Department of Economics in its series Working Papers with number 1406.
Length: 38 pages
Date of creation: Jan 2014
Date of revision:
nonprofits; charitable giving; coordination; endogenous coalition formation; non-distribution constraint;
Other versions of this item:
- Gani Aldashev & Marco Marini & Thierry Verdier, 2013. "Brothers in alms? coordination between nonprofits on markets for donations," Carlo Alberto Notebooks 293, Collegio Carlo Alberto.
- Gani Aldashev & Marco A. Marini & Thierry Verdier, 2014. "Brothers in alms ? Coordination between nonprofits on markets for donations," DIAG Technical Reports 2014-02, Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza".
- L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
- L44 - Industrial Organization - - Antitrust Issues and Policies - - - Antitrust Policy and Public Enterprise, Nonprofit Institutions, and Professional Organizations
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-03-08 (All new papers)
- NEP-CDM-2014-03-08 (Collective Decision-Making)
- NEP-GTH-2014-03-08 (Game Theory)
- NEP-SOC-2014-03-08 (Social Norms & Social Capital)
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