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Provider Incentives and Delivery of Developmental Goods

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  • Ajit Mishra

    (University of Bath)

  • S Sarangi

Abstract

We use a donor-provider-agent framework to study the delivery of developmental 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 breakdown of communications between the provider and the agents. We study the interplay between incentives and communication failure in the presence of motivated providers who derive benefits from helping the disadvantaged.

Suggested Citation

  • Ajit Mishra & S Sarangi, 2010. "Provider Incentives and Delivery of Developmental Goods," Department of Economics Working Papers 14/10, University of Bath, Department of Economics.
    • Handle: RePEc:eid:wpaper:22126
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    References listed on IDEAS

    as
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