Competition and Mergers Among Nonprofits
Tilburg University - CentER; Tilburg University - Law and Economics Center (TILEC); Tilburg University - Department of Organization & Strategy
March 8, 2010
TILEC Discussion Paper No. 2007-022
CentER Discussion Paper No. 2007-82
Should mergers among nonprofit organizations be assessed differently than mergers among for-profit firms? A recent debate in law and economics, boosted by apparently one-sided court decisions, has produced the result that promoting competition is socially valuable regardless of the particular objectives of producers. In this paper, I challenge the general validity of this result by showing that it may indeed depend on the particular objectives of producers whether a merger between two nonprofits is welfare decreasing or increasing. This implies that it is impossible to assess the net effects of a merger between two nonprofits without examining the objectives of the owners involved.
Number of Pages in PDF File: 27
Keywords: Nonprofits; Mergers; Antitrust; Not-for-profit Sector; Owner Objectives
JEL Classification: L44, L31, L22, K21
Date posted: August 16, 2007 ; Last revised: January 30, 2014
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