Coexistence of nonprofit, for‐profit and public sector institutions

Bibliographic Data

ID12614487
AuthorsFemida Handy (0000-0003-3200-8042, York University, corresponding author)
Year1997
Volume68
Issue2
Pages201-223
Publication date1997-06-01
Open AccessYes
TypeARTICLE
VenueAnnals of Public and Cooperative Economics (JOURNAL)
Journal identifiersISSN: 1370-4788 • E-ISSN: 1467-8292
PublisherWiley (PUBLISHER • GB)
DOI10.1111/1467-8292.00043
OpenAlexW1964487532
LanguageEN
Citations received7

If nonprofit organizations are superior institutions in resolving informational asymmetry and resulting contract failure, why do nonprofit (NPs), for‐profit (FPs) and government/public institutions (GPs) survive in the same industry? This article explicitly models the nonconvex budget set for the consumer that arises through the juxtaposition of the inefficiencies and contract failures that occur in the three sectors. Because the consumer is willing to trade quality for efficiency and price, varying market shares for NPs, FPs and GPs can exist in the same industry. The theory offered complements the functionalist explanation of the existence of nonprofits advanced by Weisbrod and Hansmann using a micro‐analysis

Business · Economic growth · Economics · Economy · Government (linguistics · Industrial organization · Market failure · Microeconomics · Nonprofit organization · Political science · Private sector · Profit (economics · Public sector · Public Administration · Taxation and Compliance Studies

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