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Profit with purpose? a theory of social enterprise with experimental evidence

Besley, Timothy and Ghatak, Maitreesh (2013) Profit with purpose? a theory of social enterprise with experimental evidence. Economic Organisation and Public Policy Discussion Papers (EOPP 047). The London School of Economics and Political Science, Suntory and Toyota International Centres for Economics and Related Disciplines, London, UK.

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Abstract

When social benefits cannot be measured, a hybrid organization which selects managers based on motivation can be used to balance profi…ts with a social purpose. This paper develops a model of social enterprise based on selection of citizen-managers with this goal in mind. It develops the implications of matching between founders and managers based on their preferences for the mission. The main trade-offs suggested by the theory are tested experimentally and these are used to calibrate a matching outcome. This makes precise the parameter range in which social enterprises based on selection will be observed in a market setting; we show that they achieve gains in proficiency of around 10% over non-pro…fit enterprise.

Item Type: Monograph (Report)
Official URL: http://sticerd.lse.ac.uk/
Additional Information: © 2013 The Authors
Divisions: STICERD
Subjects: H Social Sciences > HB Economic Theory
Sets: Research centres and groups > Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD)
Date Deposited: 23 Jul 2014 14:31
Last Modified: 16 Aug 2019 23:12
Funders: Suntory and Toyota International Centres for Economics and Related Disciplines
URI: http://eprints.lse.ac.uk/id/eprint/58181

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