IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/120459.html
   My bibliography  Save this paper

Competition and strategic responses to fundraising in donative markets

Author

Listed:
  • Gayle, Philip
  • Harrison, Teresa

Abstract

Nonprofit (NP) organizations provide key social service goods but rely on donations, obtained in a competitive environment, for that provision. Yet most research focuses on competition in the output markets without considering inter- and intra-sector competition in the markets for donations. This paper develops and estimates a model of NPs’ fundraising to secure donations. We highlight the strategic nature of the fundraising decision and show theoretically that rival NPs’ fundraising responses can be either strategic complements or strategic substitutes but find empirically that responses are predominantly strategic substitutes. We find that donors are relatively inelastic to fundraising but also that NPs have nontrivial responses to rival’s fundraising and these effects are stronger within than across sectors. However, in totality, the across sector impacts are important to consider. We find that counterfactually removing a NP from a market increases equilibrium NP-level fundraising but decreases total fundraising in the market.

Suggested Citation

  • Gayle, Philip & Harrison, Teresa, 2023. "Competition and strategic responses to fundraising in donative markets," MPRA Paper 120459, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:120459
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/120459/1/MPRA_paper_120459.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Fundraising; Donative Markets;

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L30 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:120459. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.