For-Profit, State, and Nonprofit: How to Cut the Pie Among the Three Sectors

Avner Ben-Ner ()

Working Papers from Human Resources and Labor Studies, University of Minnesota (Twin Cities Campus)

Abstract: What is the best way to deliver various goods and services in the advanced complex economy? What is the appropriate division of labor among the state, the private for-profit, and the nonprofit sectors? This paper explores these questions relative to the well-being of consumers, and offers a set of broad answers grounded in a benefit-cost analysis that balances (1) the relative value derived by consumers and customers from their relations with organizations from the three sectors, and (2) the relative efficiency of the internal organization of these types of organizations. The paper illustrates this benefit-cost analysis in the context of several industries.

Keywords: Three-Sector Economy; Division of labor among for-profit firms; state; and nonprofit organizations; Organization-consumer interface; Comparative analysis of agency problems; Production of public goods (search for similar items in EconPapers)
JEL-codes: D21 D23 D61 D73 D82 H11 H42 L21 L31 L32 (search for similar items in EconPapers)
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Chapter: For-Profit, State and Non-Profit: How to Cut the Pie Among the Three Sectors (2006)
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