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Rational Nonprofit Entrepreneurship

Author

Listed:
  • Bilodeau, M.
  • Slivinsky, A.

Abstract

This paper derives the decision to found a nonprofit firm 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 herself by founding a nonprofit firm. This decision also results in greater voluntary contributions than if the firm is proprietary.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Bilodeau, M. & Slivinsky, A., 1994. "Rational Nonprofit Entrepreneurship," Cahiers de recherche 94-02a, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    • Handle: RePEc:shr:wpaper:94-02a
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    Citations

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    Cited by:

    1. Zhiming Liu & Haiwei Jia, 2022. "What Drives the Development and Sustainable Growth of Cultural Nonprofits—Chinese Province-Level Evidence," Sustainability, MDPI, vol. 14(9), pages 1-17, April.
    2. Marc Bilodeau & Al Slivinski, 1998. "Rational Nonprofit Entrepreneurship," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 7(4), pages 551-571, December.
    3. James Andreoni, 1998. "Toward a Theory of Charitable Fund-Raising," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1186-1213, December.
    4. Petra Brhlikova & Andeas Ortmann, 2006. "The Impact of the Non-distribution Constraint and Its Enforcement on Entrepreneurial Choice, Price, and Quality," CERGE-EI Working Papers wp299, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    5. Sabourin, David & Baldwin, John R. & Hanel, Peter, 2000. "Les determinants des activites d'innovation dans les entreprises de fabrication canadiennes : le role des droits de propriete intellectuelle," Direction des études analytiques : documents de recherche 2000122f, Statistics Canada, Direction des études analytiques.
    6. Vesterlund, Lise, 2003. "The informational value of sequential fundraising," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 627-657, March.
    7. Ghatak, Maitreesh & Mueller, Hannes, 2011. "Thanks for nothing? Not-for-profits and motivated agents," Journal of Public Economics, Elsevier, vol. 95(1-2), pages 94-105, February.
    8. Paul Makdissi & Cyril Téjédo, 2000. "Problèmes d’appariement et politique de l’emploi," Cahiers de recherche 00-04, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    9. Madanmohan Ghosh & Carlo Perroni & John Whalley, 1999. "The Value of MFN Treatment to Developing Countries," University of Western Ontario, Departmental Research Report Series 9916, University of Western Ontario, Department of Economics.
    10. Bilodeau, Marc & Slivinski, Al, 1997. "Rival charities," Journal of Public Economics, Elsevier, vol. 66(3), pages 449-467, December.
    11. Edward Nissan & Maria-Soledad Castaño & Inmaculada Carrasco, 2012. "Drivers of non-profit activity: a cross-country analysis," Small Business Economics, Springer, vol. 38(3), pages 303-320, April.
    12. Rozélia Laurett & Arminda Maria Finisterra Paço & Anabela Rosario Leitão Dinis, 2020. "Entrepreneurship in nonprofit organizations: a systematic review of the literature," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 17(2), pages 159-181, June.
    13. Christoph Starke & Steffen Burchhardt, 2014. "Revealing the Preferences of Social Financiers," FEMM Working Papers 140002, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    14. Ballou, Jeffrey P. & Weisbrod, Burton A., 2003. "Managerial rewards and the behavior of for-profit, governmental, and nonprofit organizations: evidence from the hospital industry," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 1895-1920, September.
    15. Patrick Francois, 2001. "Employee Care and the Role of Nonprofit Organizations," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 157(3), pages 443-464, September.

    More about this item

    Keywords

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    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods

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