The best I can do is two paragraphs: Instead of ad hoc assumptions about what the head of the organization maximizes, I assume utility maximization throughout. The variables in the utility function are different for altruistic and selfish entrepreneurs, and the constraints differ according to whether the organization is a profit-seeking firm, cooperative, bureau, or nonprofit organization. Profit-seeking firms run by selfish entrepreneurs are efficient in the purchase of inputs. So are cooperatives, and nonprofit organizations run by altruistic entrepreneurs. OTOH, profit-seeking firms run by altruists or entrepreneurs interested in quality are inefficient, as are nonprofit organizations run by selfish entrepreneurs. This result is what most people expect, but it gives the lie to the neoclassical view that only profit-seeking firms are efficient.
>Gassler Robert wrote: >> In an almost completely obscure article, I turned neoclassical theory on its >> head and showed that cooperatives were at least as efficient as >> profit-seeking firms, nonprofit organizations, and government bureaus. >> >> The reference is: "The Economics of the Nonprofit Motive: A Suggested >> Formulation of Objectives and Constraints for Firms and Nonprofit >> Enterprises," Journal of Interdisciplinary Economics, Volume 8, Number 4, >> 1997, pp.265-280. > >the word "Interdisciplinary" is enough to turn the vast majority of >(orthodox) economists off. > >Robert, can you give a two-sentence summary? thanks. >-- >Jim Devine / "In an ugly and unhappy world the richest man can >purchase nothing but ugliness and unhappiness." -- George Bernard Shaw >_______________________________________________ >pen-l mailing list >[email protected] >https://lists.csuchico.edu/mailman/listinfo/pen-l > > _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
