Competition between for-profit and non-profit organizations

  • Ana Isabel Pinto de Azevedo (Student)

Student thesis: Master's Thesis

Abstract

Despite the importance of non-profit sector in the economy, little analysis has been made as to whether the behaviour of such sector differs from that of for-profit sector. To so do, we examine a duopoly model of competition to compare the equilibrium outcomes that arise in markets in which two for-profit organizations compete with those equilibrium outcomes that arise in the markets in which a for-profit organization competes with a non-profit organization. The results seem to suggest that competition between a for-profit and a non-profit organization may be detrimental to the for-profit organization, depending on the nature of competition. However, it always welfare improving for consumers and the society as a whole, due to the increase on equilibrium output and the decrease on equilibrium prices. Finally, the results also seem to suggest that any eventual tax exemptions given to the non-profit organization do not generate unfair competition.
Date of Award13 Jul 2017
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorRicardo Ribeiro (Supervisor)

Keywords

  • Duopoly competition
  • Non-profit organization
  • For-profit organization
  • Homogeneous products

Designation

  • Mestrado em Economia Empresarial

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