Entry Thresholds and Competitive Behavior Among Nonprofit Firms
Teresa D. Harrison
Drexel University - Department of Economics & International Business
Jeremy P. Thornton
Samford University - Brock School of Business
October 13, 2012
This paper attempts to describe the competitive behavior of charitable non-profit firms when prices and output are difficult to observe. The paper exploits cross-sectional variation in market size to estimate the number of non-profits that can be supported within a market. We find that our sample markets generally reach competitive levels once three or more firms are observed. The paper offers several possible interpretations of these findings and future directions for our research.
Keywords: entry thresholds, nonprofit, competition
JEL Classification: L31, L11, D43
Date posted: November 26, 2011 ; Last revised: January 30, 2014
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