I study the competition between one nonprofit and one for-profit firm under various objective functions of the nonprofit firm. The two firms optimize their objectives with respect to quality and price of their products. The nonprofit firm serves one-half of the market under pure quality...

Rationale: Why are not-for-profit organizations desirable and prevalent in health care market? This question has been asked again and again. However, it is rarely asked whether the not-for-profit status should be enforced on all hospitals or not. This second question is ours. It is mandatory for...