TY - UNPB
T1 - Firms, Nonprofits, and Cooperatives
T2 - A Theory of Organizational Choice
AU - Herbst, P.
AU - Prüfer, J.
N1 - Pagination: 40
PY - 2007
Y1 - 2007
N2 - Abstract This paper formalizes the difference between firms, nonprofits, and cooperatives and identifies optimal organizational choice. In a model of quality provision, we find a clear ranking of quality produced: Firms provide lowest and nonprofits highest levels of quality. Efficiency, however, depends on the competitive environment, the decision making process and technology. Cooperatives are optimal when decision making costs are low. Else, cooperatives are increasingly dominated by either nonprofits or firms (depending on the incremental costs of quality production). Finally, changes in the competitive environment affect organizational choice: Increased competition induces a shift towards firm organization and away from nonprofits.
AB - Abstract This paper formalizes the difference between firms, nonprofits, and cooperatives and identifies optimal organizational choice. In a model of quality provision, we find a clear ranking of quality produced: Firms provide lowest and nonprofits highest levels of quality. Efficiency, however, depends on the competitive environment, the decision making process and technology. Cooperatives are optimal when decision making costs are low. Else, cooperatives are increasingly dominated by either nonprofits or firms (depending on the incremental costs of quality production). Finally, changes in the competitive environment affect organizational choice: Increased competition induces a shift towards firm organization and away from nonprofits.
KW - Theory of the Firm
KW - Cooperatives
KW - Nonprofits
KW - Organizational Choice
KW - organizational change
M3 - Discussion paper
VL - 2007-003
T3 - TILEC Discussion Paper
BT - Firms, Nonprofits, and Cooperatives
PB - TILEC
CY - Tilburg
ER -