The Social Optimality of Production by Nonprofit Institutions: Comment,
Abstract
The paper has considered the comparison of output mix by nonprofit firms with that of profit-maximizing firms within the Newhouse model of nonprofit optimization. More detailed analysis than that provided by the Newhouse paper was devoted to nonprofit optimization, assuming that the nonprofit firm is constrained to break even with respect to each quality level of output produced. While not in conflict with Newhouse's conclusions, the analysis provides a better understanding of the power of the Newhouse model to predict specific behavior patterns of nonprofit decisionmakers, and therefore provides a more elaborate foundation for comparing the applicability of the Newhouse model relative to alternative frameworks for analyzing nonprofit firms.
Document Details
- Document Type
- Technical Report
- Publication Date
- Feb 01, 1974
- Accession Number
- ADA032279
Entities
People
- Adele P. Massell
- James R. Hosek
Organizations
- RAND Corporation