Rational Nonprofit Entrepreneurship |
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| Authors: | Marc Bilodeau Al Slivinski |
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| Institution: | Indiana University–Purdue University at Indianapolis Indianapolis, IN and Universitéde Sherbrooke Sherbrooke, Quebec, Canada, J1K 2R1.;University of Western Ontario London, Ontario, Canada N6A 5C2. |
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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. |
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