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Rational Nonprofit Entrepreneurship

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Author Info
Marc Bilodeau (Dept d'Economique, Universite de Sherbrooke)
Al Slivinski (Dept of Economics, U of Western Ontario)

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Abstract

This paper models nonprofit entrepreneurship as the equilibrium outcome of a multistage game among individuals who would like a public good to be provided.. The model predicts that if individuals will voluntarily contribute towards provision of the public good, then it is in the private interest of the entrepreneur to impose a non-distribution constraint on himself by founding a nonprofit firm. This decision also improves the allocation of resources, in the sense that it results in greater voluntary contributions than if the firm that provides the public good is proprietary.

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Paper provided by EconWPA in its series Industrial Organization with number 9405001.

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Length: 35 pages
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Handle: RePEc:wpa:wuwpio:9405001

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L - Industrial Organization

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Rose-Ackerman, Susan, 1987. "Ideals versus Dollars: Donors, Charity Managers, and Government Grants," Journal of Political Economy, University of Chicago Press, vol. 95(4), pages 810-23, August. [Downloadable!] (restricted)
  2. Sugden, Robert, 1982. "On the Economics of Philanthropy," Economic Journal, Royal Economic Society, vol. 92(366), pages 341-50, June. [Downloadable!] (restricted)
  3. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February. [Downloadable!] (restricted)
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  1. Paul Makdissi & Cyril Téjédo, 2000. "Problèmes d’appariement et politique de l’emploi," Cahiers de recherche 00-04, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke. [Downloadable!]
  2. Al Slivinski, 1999. "Team Incentives and Organizational Form," UWO Department of Economics Working Papers 9916, University of Western Ontario, Department of Economics. [Downloadable!]
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This page was last updated on 2009-12-9.

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