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• W2315945505 abstract "This paper attempts to investigate the performance of non-profit organizations under vertical restraints. We examine the problems with information transmission when a profit-maximizing producer vertically restricts non-profit organization production with contributed funds, and the organizations can choose the investment level of the funds. Non-profit organization production is defined here as “non-profit social activities” undertaken for the security of drinking water, the reforestation of desertified land, the removal of land mines, and similar activities. If the degrees of production efficiency of organizations are high enough, information transmission is not beneficial for non-profit organizations, and hence information sharing may not develop between the producers and the organizations through social activities. The prospective level of activity can be improved by information sharing when the scheme of information sharing targets non-profit organizations that are operating below a critical level of production efficiency.The implications of this result are the potential positive and negative effects on the non-profit organization. When uncertainty of production becomes greater, non-profit organizations are motivated to monopolize information and non-profit organization behavior becomes more random, reducing the expected output. This negative effect can be reduced by passing information on to producers. Information sharing can be considered as a form of risk-sharing. Given the positive and the negative effects, non-profit organizations are faced with a decision to either monopolize or to share information. When certain conditions are fulfilled, non-profit organizations voluntarily transmit information to profit-maximizing producers. Producers benefit from non-profit organizations by using information sharing as social alliances. The model in this paper may not be generalized, but it does present an interesting perspective for “cause-related marketing”.JEL Classification:D82, L31, L42, M31" @default.
• W2315945505 created "2016-06-24" @default.
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• W2315945505 date "2013-01-01" @default.
• W2315945505 modified "2023-09-24" @default.
• W2315945505 title "Non-Profit Organizations and Information Transmission under Vertical Restraints: Information Sharing as Social Alliances or Cause Relations" @default.
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• W2315945505 doi "https://doi.org/10.2457/srs.43.451" @default.
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