Discussion Paper Details

Please find the details for DP8109 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Brothers in Alms? Coordination between NGOs on Markets for Development Donations

Author(s): Gani Aldashev, Marco Marini and Thierry Verdier

Publication Date: November 2010

Keyword(s): coordination, endogenous coalition formation, giving, NGOs and non-distribution constraint

Programme Area(s): Development Economics and Public Economics

Abstract: This paper studies the stability of coordination between mission-driven non-governmental organizations (NGOs) competing for donations. We build a non-cooperative game-theoretic model of alliance formation between NGOs that compete through fundraising activities and impose externalities on each others? output. We derive general results on the stability of full coordination under two classes of alliance-formation rules: unanimity and aggregative. If fundraising activities are strategic complements, the grandcoalition (i.e. full coordination) is always individually stable and, under the unanimity rule, coalitionally stable. When fundraising activities are strategic substitutes, the grandcoalition can be unstable and the instability is more likely, the steeper are NGOs? (negatively sloped) best-reply functions. Under the aggregative rule, the grandcoalition is stable: (i) individually, if there are negative coalitional externalities; (ii) coalitionally, if breaking an alliance requires the majority of NGOs involved in the alliance.

For full details and related downloads, please visit:

Bibliographic Reference

Aldashev, G, Marini, M and Verdier, T. 2010. 'Brothers in Alms? Coordination between NGOs on Markets for Development Donations'. London, Centre for Economic Policy Research.