Demand for collective goods in private nonprofit markets: Can fundraising expenditures help overcome free-rider behavior?

Burton A. Weisbrod*, Nestor D. Dominguez

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

252 Scopus citations

Abstract

Economic theory ascribes the primary role in the provision of public goods to government. This emphasis on government overlooks the role of the not-for-profit sector in providing collective-type goods. In this paper we seek to determine the factors influencing charitable contributions to private nonprofit organizations by estimating a demand function for the output of these collective-good providers. Specifically, we test the hypothesis that voluntary giving is responsive to conventional market variables such as advertising expenditures, price, and quality. Overall, the results are strongly supportive.

Original languageEnglish (US)
Pages (from-to)83-96
Number of pages14
JournalJournal of Public Economics
Volume30
Issue number1
DOIs
StatePublished - Jun 1986

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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