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Nonprofit Product Differentiation

Author

Listed:
  • Robert Rosenman

    (School of Economic Sciences, Washington State University)

  • Felix Munoz-Garcia

    (Washington State University)

Abstract

In this note we analyze two-dimensional product differentiation in competition between nonprofit firms. Unlike for-profit settings, which finds maximal differentiation in the characteristic most salient to consumers and minimal differentiation in the other dimension, we show that the presence of at least one nonprofit firm leads to minimal differentiation in both dimensions. We extend the analysis to mixed competition between a nonprofit firm and a for-profit firm.

Suggested Citation

  • Robert Rosenman & Felix Munoz-Garcia, 2017. "Nonprofit Product Differentiation," Economics Bulletin, AccessEcon, vol. 37(3), pages 1415-1420.
    • Handle: RePEc:ebl:ecbull:eb-17-00423
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2017/Volume37/EB-17-V37-I3-P128.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Product differentiation; dominant dimension; nonprofit; for-profit;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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