Utilize este identificador para referenciar este registo:
https://hdl.handle.net/1822/11996
Título: | Quality competition with profit constraints : do non-profit firms provide higher quality than for-profit firms? |
Autor(es): | Brekke, Kurt R. Siciliani, Luigi Straume, Odd Rune |
Palavras-chave: | Profit constraints Semi-altruistic providers Quality competition Semi-altruistic providers |
Data: | 2011 |
Editora: | Universidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE) |
Citação: | BREKKE, Kurt R. ; SICILIANA, Luigi ; STRAUME, Odd Rune – “Quality competition with profit constraints : do non-profit firms provide higher quality than for-profit firms?” [Em linha]. Braga : Núcleo de Investigação em Políticas Económicas, 2011. [Consult. 28 Mar. 2011]. Disponível em WWW: <URL: http://www3.eeg.uminho.pt/economia/nipe/docs/2011/NIPE_WP_05_2011.pdf>. |
Resumo(s): | In many markets, such as education, health care and public utilities, firms are often profit-constrained either due to regulation or because they have non-profit status. At the same time such firms might have altruistic concerns towards consumers. In this paper we study semi-altruistic firms’ incentives to invest in quality and cost-reducing effort when facing constraints on the distribution of profits. Using a spatial competition framework, we derive the equilibrium outcomes under both quality competition with regulated prices and quality price competition. Profit constraints always lead to lower cost-efficiency, whereas the effects on quality and price are ambiguous. If altruism is high (low), profit-constrained firms offer higher (lower) quality and lower (higher) prices than firms that are not profit-constrained. Compared with the first-best outcome, the cost-efficiency of profit-constrained firms is too low, while quality might be over- or underprovided. Profit constraints may improve welfare and be a complement or substitute to a higher regulated price, depending on the degree of altruism. |
Tipo: | Documento de trabalho |
URI: | https://hdl.handle.net/1822/11996 |
Versão da editora: | http://www3.eeg.uminho.pt/economia/nipe/docs/2011/NIPE_WP_05_2011.pdf |
Arbitragem científica: | no |
Acesso: | Acesso aberto |
Aparece nas coleções: | NIPE - Documentos de Trabalho |
Ficheiros deste registo:
Ficheiro | Descrição | Tamanho | Formato | |
---|---|---|---|---|
NIPE_WP_05_2011.pdf | NIPE_WP_05_2011 | 660,47 kB | Adobe PDF | Ver/Abrir |