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Does market size matter for charities

Lapointe, Simon and Perroni, Carlo and Scharf, Kimberley and Tukiainen, Janne (2018) Does market size matter for charities. Journal of Public Economics. ISSN 0047-2727 (In Press)

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Abstract

We analyze implications of market size for market structure in the charity sector. While a standard model of oligopolistic for-profit competition predicts a positive relationship between market size and firm size, our analogous model of competition between prosocially motivated charities predicts no such correlation. If charities are biased towards their own provision, a positive association between market size and provider size can arise. We examine these predictions empirically for six different local charity markets. Our empirical findings suggest that charities do not solely pursue prosocial objectives, and that increased competition in the charity sector can lead to rationalization in provision

Item Type: Article
Official URL: https://www.journals.elsevier.com/journal-of-publi...
Additional Information: © 2018 Elsevier B.V.
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor
JEL classification: H - Public Economics > H4 - Publicly Provided Goods > H41 - Public Goods
L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L11 - Production, Pricing, and Market Structure; Size Distribution of Firms
L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L13 - Oligopoly and Other Imperfect Markets
L - Industrial Organization > L3 - Nonprofit Organizations and Public Enterprise > L31 - Nonprofit Institutions; NGOs
L - Industrial Organization > L3 - Nonprofit Organizations and Public Enterprise > L33 - Comparison of Public and Private Enterprises; Privatization; Contracting Out
Sets: Departments > Government
Date Deposited: 17 Oct 2018 11:51
Last Modified: 17 Oct 2018 14:02
Funders: Economic & Social Research Council
URI: http://eprints.lse.ac.uk/id/eprint/90444

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