4 ms·
Some economists show in the paper linked below that being not for profit can be seen as a commitment for quality since you have removed from the company the inc
by toto444 7y ago
Some economists show in the paper linked below that being not for profit can be seen as a commitment for quality since you have removed from the company the incentives to exploit your consumers.
Abstract :
Entrepreneurs who start new firms may choose not-for-profit status as a means of committing to soft incentives. Such incentives protect donors, volunteers, consumers and employees from ex post expropriation of profits by the entrepreneur.
https://scholar.harvard.edu/shleifer/publications/not-profit-entrepreneurs https://scholar.harvard.edu/shleifer/publications/not-profit...
- dillonmckay 7y agoI disagree with that. Most US universities are non-profits and use undergrad revenues for real estate development.
- mikekchar 7y agoWhile absolutely true, a good counter example are various co-ops that are run as non-profits. Often they can not only be the best place to get high quality good, but also the only place, since they are driven by what their members want rather than trying to make the highest possible profit. However, wherever there is a lot of money, you will find people who are trying desperately to shove that money into their pockets.