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Robert Rosenman and Felix Munoz-Garcia
''Nonprofit Product Differentiation''
( 2017, Vol. 37 No.3 )
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.
Keywords: Product differentiation, dominant dimension, nonprofit, for-profit
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General
L2 - Firm Objectives, Organization, and Behavior: General
Manuscript Received : May 31 2017 Manuscript Accepted : Jul 02 2017

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