High-Powered Incentives and Communication Failure

Mishra, Ajit; Sarangi, Sudipta

doi:10.1596/1813-9450-7345

collection.link.5	https://openknowledge.worldbank.org/handle/10986/9
collection.name.5	Policy Research Working Papers
dc.contributor.author	Mishra, Ajit
dc.contributor.author	Sarangi, Sudipta
dc.date.accessioned	2015-07-17T20:55:45Z
dc.date.available	2015-07-17T20:55:45Z
dc.date.issued	2015-06
dc.date.lastModified	2021-04-23T14:04:07Z
dc.description.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. 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.	en
dc.identifier	http://documents.worldbank.org/curated/en/2015/06/24728266/high-powered-incentives-communication-failure
dc.identifier.uri	http://hdl.handle.net/10986/22225
dc.language	English
dc.language.iso	en_US
dc.publisher	World Bank, Washington, DC
dc.relation.ispartofseries	Policy Research Working Paper;No. 7345
dc.rights	CC BY 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	http://creativecommons.org/licenses/by/3.0/igo/
dc.subject	TRADITIONAL TECHNOLOGY
dc.subject	TECHNOLOGY
dc.subject	KNOWING
dc.subject	RISK NEUTRAL
dc.subject	MOTIVATION
dc.subject	PRODUCTION
dc.subject	WAGES
dc.subject	BASIC
dc.subject	PARTICIPATION
dc.subject	INCOME
dc.subject	KNOW-HOW
dc.subject	VALUE
dc.subject	GOVERNMENT
dc.subject	CREDIT
dc.subject	PROGRAMS
dc.subject	INFORMATION
dc.subject	TEXT
dc.subject	SERVICES
dc.subject	AGRICULTURE
dc.title	High-Powered Incentives and Communication Failure	en
dc.type	Working Paper	en
okr.date.disclosure	2015-06-29
okr.doctype	Publications & Research
okr.doctype	Publications & Research :: Policy Research Working Paper
okr.docurl	http://documents.worldbank.org/curated/en/2015/06/24728266/high-powered-incentives-communication-failure
okr.globalpractice	Poverty
okr.googlescholar.linkpresent	yes
okr.identifier.doi	10.1596/1813-9450-7345
okr.identifier.externaldocumentum	090224b082fa249f_1_0
okr.identifier.internaldocumentum	24728266
okr.identifier.report	WPS7345
okr.language.supported	en
okr.pdfurl	http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/06/29/090224b082fa249f/1_0/Rendered/PDF/High0powered0i0ommunication0failure.pdf	en
okr.topic	Macroeconomics and Economic Growth :: Development Economics & Aid Effectiveness
okr.topic	Macroeconomics and Economic Growth :: Economic Assistance
okr.topic	Macroeconomics and Economic Growth :: Economic Theory & Research
okr.topic	Macroeconomics and Economic Growth :: Foreign Aid
okr.topic	Poverty Reduction :: Conditional Cash Transfers
okr.topic	Poverty Reduction :: Services & Transfers to Poor
okr.topic	Social Protections and Labor :: Safety Nets and Transfers
okr.unit	Office of the Chief Economist, Development Economics Vice Presidency (DECVP)

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Shock Waves : Managing the Impacts of Climate Change on Poverty

Trust, Voice, and Incentives : Learning from Local Success Stories in Service Delivery in the Middle East and North Africa

World Development Report 2021 : Data for Better Lives

How to Avoid Middle Income Traps : Evidence from Malaysia

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Shock Waves : Managing the Impacts of Climate Change on Poverty

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