We formalize the difference between profit‐maximizing firms, nonprofits, and cooperatives and identify optimal organizational choice in a model of quality provision. Firms provide lowest and nonprofits highest levels of quality. Efficiency, however, depends on the competitive environment, the...

[PhD Dissertation] The Metropolitan Water District of Southern California (MET), a cooperative of retail and wholesale water utilities, serves 18 million people. This case study explains how MET - as a cooperative - is inefficient and how its member agencies suffer from this inefficiency. I show...