Rational Nonprofit Entrepreneurship
Journal of Economics & Management StrategyPublished 1 December 1998
Marc Bilodeau, Al Slivinski
Citations51
SJR quartileQ1
SJR score1.08
SNIP1.01
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Abstract
This paper derives the decision to found a nonprofit firm as the equilibrium outcome of a multistage game among individuals who would like a public good to be provided. The model predicts that if individuals will voluntarily contribute towards provision of the public good, then it is in the self‐interest of the entrepreneur to impose a nondistribution constraint on herself by founding a nonprofit firm.
Keywords
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