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Author:Chau, N.H.
Huysentruyt, M.
Title:Nonprofits and public good provision: A contest based on compromises
Journal:European Economic Review
2006 : NOV, VOL. 50:8, p. 1909-1935
Index terms:models
public goods
auctions
non-profit organizations
Freeterms:citizen heterogeneity
voluntarism
Language:eng
Abstract:This paper examines the extent to which average public values are undermined and nonprofits' ideology compromised in a contractual game. In determining the equilibrium terms of the contract, scrutinized are the roles of i. cooperative vs. competitive contracting, ii. multiple public goods, iii. enforceability of actions and iv. observability of nonprofit costs. In each case, the intensity of the ideological divide btw. the donor and the nonprofits jointly impact the degree to which compromises are made as to both the public's and nonprofit's missions etc.
SCIMA record nr: 262994
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