Entry Thresholds and Competitive Behavior Among Nonprofit Firms

Posted: 26 Nov 2011 Last revised: 30 Jan 2014

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., Entry Thresholds and Competitive Behavior Among Nonprofit Firms (October 13, 2012). 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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