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Too Many Nonprofits? An Empirical Approach to Estimating Trends in Nonprofit Demand

Harrison, T. & Thornton, J. (2014). Too Many Nonprofits? An Empirical Approach to Estimating Trends in Nonprofit Demand Density. Nonprofit Policy Forum. 5(2), 213-229.

17 Pages Posted: 26 Nov 2011 Last revised: 13 Sep 2017

Teresa D. Harrison

Drexel University - Department of Economics & International Business

Jeremy P. Thornton

Samford University - Brock School of Business

Date Written: October 13, 2012

Abstract

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

Suggested Citation

Harrison, Teresa D. and Thornton, Jeremy P., Too Many Nonprofits? An Empirical Approach to Estimating Trends in Nonprofit Demand (October 13, 2012). Harrison, T. & Thornton, J. (2014). Too Many Nonprofits? An Empirical Approach to Estimating Trends in Nonprofit Demand Density. Nonprofit Policy Forum. 5(2), 213-229. . Available at SSRN: https://ssrn.com/abstract=1964437 or http://dx.doi.org/10.2139/ssrn.1964437

Teresa D. Harrison

Drexel University - Department of Economics & International Business ( email )

3141 Chestnut St.
Philadelphia, PA 19104
United States

Jeremy P. Thornton (Contact Author)

Samford University - Brock School of Business ( email )

800 Lakeshore Drive
Birmingham, AL 35229
United States
2057262128 (Phone)

HOME PAGE: http://https://www.samford.edu/business/directory/Thornton-Jeremy

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