The Business of Business is Business: Why (Some) Firms Should Provide Public Goods when they Sell Private Goods / Chien-Yu Lai, Andreas Lange, John A. List, Michael K. Price.

Format:

Book

Author/Creator:

Lai, Chien-Yu.

Contributor:

National Bureau of Economic Research.

Lange, Andreas.

List, John A.

Price, Michael K.

Series:

Working Paper Series (National Bureau of Economic Research) no. w23105.

NBER working paper series no. w23105

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Business of Business is Business

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2017.

Summary:

This note links the commodity bundling literature with the literature on the private provision of public goods. We discuss the potential profitability of bundling strategies for both private firms and charitable organizations. Even in the absence of consumption complementarities, we show important cases when private and public goods should be bundled. For example, both a monopolist and a charity can profit from bundling the goods they provide. Linking sales to charitable contributions can also be beneficial for for-profit firms as it alleviates price-competition. Beyond providing a theoretical framework for understanding the incentive properties of bundling private and public goods, the study lends insights into the debate on the efficacy of corporate social responsibility.

Notes:

Print version record

January 2017.