Bonatti, Luigi; Borzaga, Carlo; Mittone, Luigi - In: Rivista di Politica Economica 95 (2005) 3, pp. 137-164
We present a general equilibrium model where manufacturing and service firms coexist. The quality of the service depends on the workers' effort. Two institutional regimes are compared, in which the service-providing firms are for-profit enterprises or, alternatively, nonprofit organizations. The...