Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

Thursday, August 19, 2010

Competition and Mergers Among Nonprofits

Posted by D. Daniel Sokol

Jens Prufer, TILEC and CentER, Department of Economics, Tilburg University has a paper on the very interesting topic of Competition and Mergers Among Nonprofits.

ABSTRACT: Should mergers among nonprofit organizations be assessed differently than mergers among for-profit firms? A recent debate in law and economics, boosted by apparently one-sided court decisions, has produced the result that promoting competition is socially valuable regardless of the particular objectives of producers. In this paper, I challenge the general validity of this result by showing that it may indeed depend on the particular objectives of producers whether a merger between two nonprofits is welfare decreasing or increasing. This implies that it is impossible to assess the net effects of a merger between two nonprofits without examining the objectives of the owners involved.

| Permalink

TrackBack URL for this entry:

Listed below are links to weblogs that reference Competition and Mergers Among Nonprofits:


Post a comment