Organizational design for making a difference

• 成果类型: Article
• 署名作者: Prendergast, Canice
• 署名单位: University of Chicago
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2022.104817
• 发表日期: 2023
• 关键词: Donors; Making a difference; Donor driven organizations

摘要

We address organizations that rely on donors, when those donors are motivated by making a difference. We show that when donors care sufficiently about their marginal impact, firms use practices that would normally be deemed inefficient. These include prioritizing less valuable opportunities over better ones, investing most in their weakest initiatives, and benefiting from not identifying the quality of their projects. These all arise from a distinction between marginal and average returns generated by donor preferences.