High-powered incentives and communication failure

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2016
Volume: 131
Issue: PA
Pages: 51-60

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper uses a donor–provider–agent framework to study the role of provider incentives for the delivery of developmental goods like aid, credit, or technology transfer to the poor. It considers a situation where credible communication by the provider is the key to successful delivery. The study focuses on the interplay between incentives and communications and shows that the use of high-powered incentives can lead to breakdown of communication between providers and agents, leading to undesirable outcomes. However, in many situations motivated providers or state-contingent contracts can be used to achieve the second best outcome.

Technical Details

RePEc Handle
repec:eee:jeborg:v:131:y:2016:i:pa:p:51-60
Journal Field
Theory
Author Count
2
Added to Database
2026-01-26