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.
机构:
Univ Wales Coll Cardiff, Wales Inst Innovat, Cardiff, S Glam, WalesSingapore Management Univ, Lee Kong Chian Sch Business, 50 Stamford Rd, Singapore 178899, Singapore