Rational nonprofit entrepreneurship

Authors
Bilodeau, M Slivinski, A
Citation
M. Bilodeau et A. Slivinski, Rational nonprofit entrepreneurship, J ECON MAN, 7(4), 1998, pp. 551-571
Citations number
25
Categorie Soggetti
Economics
Journal title
JOURNAL OF ECONOMICS & MANAGEMENT STRATEGY
ISSN journal
10586407 → ACNP
Volume
7
Issue
4
Year of publication
1998
Pages
551 - 571
Database
ISI
SICI code
1058-6407(199824)7:4<551:RNE>2.0.ZU;2-J
Abstract
This paper derives the decision to found a nonprofit firm as the equilibriu m outcome of a multistage game among individuals who would like a public go od to be provided. The model predicts that if individuals will voluntarily contribute towards provision of the public good, then it is in the self-int erest of the entrepreneur to impose a nondistribution constraint on herself by founding a nonprofit firm.