Brothers in alms? Coordination between nonprofits on markets for donations

A-Tier
Journal: Journal of Public Economics
Year: 2014
Volume: 117
Issue: C
Pages: 182-200

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Mission-driven nonprofit organizations compete for donations through fundraising activities. Such competition can lead to inefficient outcomes, if nonprofits impose externalities on each others' output. This paper studies the sustainability of fundraising coordination agreements, using a game-theoretic model of coalition formation. We show that three key characteristics determine the stability of cooperation between nonprofits: (i) the alliance formation rule, (ii) the extent to which fundraising efforts are strategic complements/substitutes, and (iii) whether deviation from the agreements is by an individual or by a group of nonprofits. We analyze how the interaction of these three features induces (or not) the stability of Pareto-optimal full coordination in fundraising.

Technical Details

RePEc Handle
repec:eee:pubeco:v:117:y:2014:i:c:p:182-200
Journal Field
Public
Author Count
3
Added to Database
2026-01-24