Does market size matter for charities?

Simon Lapointe, Carlo Perroni, Kimberley Scharf, Janne Tukiainen

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)


We analyze implications of market size for market structure in the charity sector. While a standard model of oligopolistic for-profit competition predicts a positive relationship between market size and firm size, our analogous model of competition between prosocially motivated charities predicts no such correlation. If charities are biased towards their own provision, a positive association between market size and provider size can arise. We examine these predictions empirically for six different local charity markets. Our empirical findings suggest that charities do not solely pursue prosocial objectives, and that increased competition in the charity sector can lead to rationalization in provision.
Original languageEnglish
Pages (from-to)127-145
Number of pages19
JournalJournal of Public Economics
Early online date7 Nov 2018
Publication statusPublished - Dec 2018


  • Competition in charity sectors
  • Market structure


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