Nonprofit and profit companies in monopolistic competition
A homogenous goods market with nonprofit and profit companies engaged in monopolistic competition is proposed. In a short run equilibrium, entrance of more companies of both types increases consumer surplus and reduces company profit. However, nonprofit companies under a long run zero profit constraint will act inefficiently and have higher marginal costs than profit companies. From this follows that more funds for donations to nonprofit companies reduce the welfare to be gained on the market. Depending on the size of donations, nonprofit companies may have higher, the same or lower (quality) output than profit companies.
|Date of creation:||01 Jan 2011|
|Date of revision:|
|Contact details of provider:|| Postal: Department of Business and Economics, University of Southern Denmark, Campusvej 55, DK-5230 Odense M, Denmark|
Phone: 65 50 32 33
Fax: 65 50 32 37
Web page: http://www.sdu.dk/ivoe
More information through EDIRC
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.:
- Andreoni, James & Payne, A. Abigail, 2011.
"Is crowding out due entirely to fundraising? Evidence from a panel of charities,"
Journal of Public Economics,
Elsevier, vol. 95(5-6), pages 334-343, June.
- Andreoni, James & Payne, A. Abigail, 2011. "Is crowding out due entirely to fundraising? Evidence from a panel of charities," Journal of Public Economics, Elsevier, vol. 95(5), pages 334-343.
- James Andreoni & A. Abigail Payne, 2010. "Is Crowding Out Due Entirely to Fundraising? Evidence from a Panel of Charities," Department of Economics Working Papers 2010-08, McMaster University.
- James Andreoni & A. Abigail Payne, 2010. "Is Crowding Out Due Entirely to Fundraising? Evidence from a Panel of Charities," NBER Working Papers 16372, National Bureau of Economic Research, Inc.
- Edward L. Glaeser & Andrei Shleifer, 1998.
Harvard Institute of Economic Research Working Papers
1852, Harvard - Institute of Economic Research.
- Deneffe, Daniel & Masson, Robert T., 2002. "Erratum to "What do not-for-profit hospitals maximize?": [Internat. J. of Ind. Organization 20(4) (2002) 461-492]," International Journal of Industrial Organization, Elsevier, vol. 20(7), pages 1059-1059, September.
- Deneffe, Daniel & Masson, Robert T., 2002. "What do not-for-profit hospitals maximize?," International Journal of Industrial Organization, Elsevier, vol. 20(4), pages 461-492, April.
- Lakdawalla, Darius & Philipson, Tomas, 2006. "The nonprofit sector and industry performance," Journal of Public Economics, Elsevier, vol. 90(8-9), pages 1681-1698, September.
- Garth Heutel, 2014.
"Crowding Out and Crowding In of Private Donations and Government Grants,"
Public Finance Review,
SAGE Publishing, vol. 42(2), pages 143-175, March.
- Garth Heutel, 2009. "Crowding Out and Crowding In of Private Donations and Government Grants," NBER Working Papers 15004, National Bureau of Economic Research, Inc.
- Anup Malani & Guy David, 2008. "Does Nonprofit Status Signal Quality?," The Journal of Legal Studies, University of Chicago Press, vol. 37(2), pages 551-576, 06.
When requesting a correction, please mention this item's handle: RePEc:hhs:sdueko:2011_001. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lene Holbæk)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.