High-Powered Incentives and Communication Failure

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. The paper considers a situation where credible communication by...

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Main Authors: Mishra, Ajit, Sarangi, Sudipta
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2015
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2015/06/24728266/high-powered-incentives-communication-failure
http://hdl.handle.net/10986/22225
id okr-10986-22225
recordtype oai_dc
spelling okr-10986-222252021-04-23T14:04:07Z High-Powered Incentives and Communication Failure Mishra, Ajit Sarangi, Sudipta TRADITIONAL TECHNOLOGY TECHNOLOGY KNOWING RISK NEUTRAL MOTIVATION PRODUCTION WAGES BASIC PARTICIPATION INCOME KNOW-HOW VALUE GOVERNMENT CREDIT PROGRAMS INFORMATION TEXT SERVICES AGRICULTURE 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. The paper considers a situation where credible communication by the provider is the key to successful delivery. The study shows that the use of high-powered incentives can lead to breakdown of communication between providers and agents, leading to undesirable outcomes. The paper studies the interplay between incentives and communication in the presence of typical and motivated providers and finds that in certain situations incentivization leads to worse outcomes. 2015-07-17T20:55:45Z 2015-07-17T20:55:45Z 2015-06 Working Paper http://documents.worldbank.org/curated/en/2015/06/24728266/high-powered-incentives-communication-failure http://hdl.handle.net/10986/22225 English en_US Policy Research Working Paper;No. 7345 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic TRADITIONAL TECHNOLOGY
TECHNOLOGY
KNOWING
RISK NEUTRAL
MOTIVATION
PRODUCTION
WAGES
BASIC
PARTICIPATION
INCOME
KNOW-HOW
VALUE
GOVERNMENT
CREDIT
PROGRAMS
INFORMATION
TEXT
SERVICES
AGRICULTURE
spellingShingle TRADITIONAL TECHNOLOGY
TECHNOLOGY
KNOWING
RISK NEUTRAL
MOTIVATION
PRODUCTION
WAGES
BASIC
PARTICIPATION
INCOME
KNOW-HOW
VALUE
GOVERNMENT
CREDIT
PROGRAMS
INFORMATION
TEXT
SERVICES
AGRICULTURE
Mishra, Ajit
Sarangi, Sudipta
High-Powered Incentives and Communication Failure
relation Policy Research Working Paper;No. 7345
description 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. The paper considers a situation where credible communication by the provider is the key to successful delivery. The study shows that the use of high-powered incentives can lead to breakdown of communication between providers and agents, leading to undesirable outcomes. The paper studies the interplay between incentives and communication in the presence of typical and motivated providers and finds that in certain situations incentivization leads to worse outcomes.
format Working Paper
author Mishra, Ajit
Sarangi, Sudipta
author_facet Mishra, Ajit
Sarangi, Sudipta
author_sort Mishra, Ajit
title High-Powered Incentives and Communication Failure
title_short High-Powered Incentives and Communication Failure
title_full High-Powered Incentives and Communication Failure
title_fullStr High-Powered Incentives and Communication Failure
title_full_unstemmed High-Powered Incentives and Communication Failure
title_sort high-powered incentives and communication failure
publisher World Bank, Washington, DC
publishDate 2015
url http://documents.worldbank.org/curated/en/2015/06/24728266/high-powered-incentives-communication-failure
http://hdl.handle.net/10986/22225
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