Does market size matter for charities?

• 成果类型: Article
• 署名作者: Lapointe, Simon; Perroni, Carlo; Scharf, Kimberley; Tukiainen, Janne
• 署名单位: VATT Institute for Economic Research; University of Warwick; Leibniz Association; Ifo Institut; University of Birmingham; Centre for Economic Policy Research - UK; University of London; London School Economics & Political Science
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2018.10.003
• 发表日期: 2018
• 页码: 127-145
• 关键词: Competition in charity sectors; market structure

摘要

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. (C) 2018 Elsevier B.V. All rights reserved.