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Further Evidence on Competition in Nonprofit Donor Market
SSRN Electronic Journal
2021
Abstract
This paper introduces a new empirical approach to the nonprofit literature which can measure competition between nonprofit organizations. Our approach provides a framework to determine when and how the number of firms may be incorporated in empirical competitive analysis. We then systematically estimate the average population needed to support a given number of nonprofits in a market. We find that, for the ten nonprofit industries examined, markets reach competitive levels once four or more nonprofits have entered. The results suggest that a relatively small number of nonprofits are needed to ensure robust competition. Our findings demonstrate that donor market competition is predictive in nonprofit entry decisions and remarkably similar to for-profit firms. We discuss several implications of these findings, both in terms of policy and future empirical research
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Details
- Title
- Further Evidence on Competition in Nonprofit Donor Market
- Creators
- Teresa D Harrison
- Publication Details
- SSRN Electronic Journal
- Series
- Nonprofit and Voluntary Sector Quarterly 2021
- Publisher
- SSRN
- Resource Type
- Other
- Language
- English
- Academic Unit
- Economics (School of Economics)
- Other Identifier
- 991020545123804721