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Information, competition, and the quality of charities

Publication ,  Journal Article
Krasteva, S; Yildirim, H
Published in: Journal of Public Economics
December 1, 2016

Drawing upon the all-pay auction literature, we propose a model of charity competition in which informed giving alone can account for the significant quality heterogeneity across similar charities. Our analysis identifies a negative effect of competition and a positive effect of informed giving on the equilibrium quality of charity. In particular, we show that as the number of charities grows, so does the percentage of charity scams, approaching one in the limit. In light of this and other results, we discuss the need for regulating nonprofit entry and conduct as well as promoting informed giving.

Duke Scholars

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Published In

Journal of Public Economics

DOI

ISSN

0047-2727

Publication Date

December 1, 2016

Volume

144

Start / End Page

64 / 77

Related Subject Headings

  • Economics
  • 3803 Economic theory
  • 3801 Applied economics
  • 1403 Econometrics
  • 1402 Applied Economics
  • 1401 Economic Theory
 

Citation

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Krasteva, S., & Yildirim, H. (2016). Information, competition, and the quality of charities. Journal of Public Economics, 144, 64–77. https://doi.org/10.1016/j.jpubeco.2016.10.008
Krasteva, S., and H. Yildirim. “Information, competition, and the quality of charities.” Journal of Public Economics 144 (December 1, 2016): 64–77. https://doi.org/10.1016/j.jpubeco.2016.10.008.
Krasteva S, Yildirim H. Information, competition, and the quality of charities. Journal of Public Economics. 2016 Dec 1;144:64–77.
Krasteva, S., and H. Yildirim. “Information, competition, and the quality of charities.” Journal of Public Economics, vol. 144, Dec. 2016, pp. 64–77. Scopus, doi:10.1016/j.jpubeco.2016.10.008.
Krasteva S, Yildirim H. Information, competition, and the quality of charities. Journal of Public Economics. 2016 Dec 1;144:64–77.
Journal cover image

Published In

Journal of Public Economics

DOI

ISSN

0047-2727

Publication Date

December 1, 2016

Volume

144

Start / End Page

64 / 77

Related Subject Headings

  • Economics
  • 3803 Economic theory
  • 3801 Applied economics
  • 1403 Econometrics
  • 1402 Applied Economics
  • 1401 Economic Theory