Provider Incentives and Delivery of Developmental Goods
AbstractWe use a donor-provider-agent framework to study the delivery of de- velopmental goods (i.e. aid, credit, technology transfer to poor). The need to provide incentives for the intermediate provider has been a key issue in the recent academic as well as non-academic discourses. We show that the use of high-powered incentives can lead to breadkdown of communications between the provider and the agents. We study the interplay between incen- tives and communication failure in the presence of motivated providers who derive bene�ts from helping the disadvantaged.
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Bibliographic InfoPaper provided by University of Bath, Department of Economics in its series Department of Economics Working Papers with number 22126.
Date of creation: Dec 2010
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developmental goods; communication; incentives; motivated provider;
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