Nonprofit Product Differentiation

Robert Rosenman and Felix Munoz-Garcia

Economics Bulletin, 2017, vol. 37, issue 3, 1415-1420

Abstract: In this note we analyze two-dimensional product differentiation in competition between nonprofit firms. Unlike for-profit settings, which finds maximal differentiation in the characteristic most salient to consumers and minimal differentiation in the other dimension, we show that the presence of at least one nonprofit firm leads to minimal differentiation in both dimensions. We extend the analysis to mixed competition between a nonprofit firm and a for-profit firm.

Keywords: Product differentiation; dominant dimension; nonprofit; for-profit (search for similar items in EconPapers)
JEL-codes: L1 L2 (search for similar items in EconPapers)
Date: 2017-07-02
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