The Donor Problem: An Experimental Analysis of Beneficiary Empowerment.

Donors often rely on local intermediaries to deliver benefits to target beneficiaries. Each selected recipient observes if the intermediary under-delivers to them, so they serve as natural monitors. These recipients may, however, withhold complaints to 'thank' the intermediary for selecting them. Fu...

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Published in:Journal of Development Studies Vol. 46; no. 8; pp. 1327 - 1345
Main Authors: Abbink, Klaus, Ellman, Matthew
Format: Article
Published: Taylor & Francis Ltd Sep2010
Subjects:
Online Access:View this record in EBSCOhost
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        atl: The Donor Problem: An Experimental Analysis of Beneficiary Empowerment.
      aug:
        au:
          Abbink, Klaus
          Ellman, Matthew
        affil:
          University of Amsterdam (CREED), The Netherlands
          Universitat Autònoma de Barcelona (UAB), Spain
      su:
        Beneficiaries
        Charitable uses, trusts, & foundations
        Finance
        Developmental programs
        Industrial management
        Decentralization in management
      sug:
        subj:
          Beneficiaries
          Charitable uses, trusts, & foundations
          Finance
          Developmental programs
          Industrial management
          Decentralization in management
      ab: Donors often rely on local intermediaries to deliver benefits to target beneficiaries. Each selected recipient observes if the intermediary under-delivers to them, so they serve as natural monitors. These recipients may, however, withhold complaints to 'thank' the intermediary for selecting them. Furthermore, the intermediary may distort selection (for example, by picking richer recipients who feel less entitled) to reduce complaints. We design an experimental game representing the donor's problem. We compare two institutions. In one treatment the intermediary selects recipients. In the other selection is random - as by an uninformed donor. In our data random selection dominates delegation of the selection task to the intermediary. Selection distortions are similar but intermediaries divert more when they have selection power (correctly anticipating that gratitude for selection will reduce complaints). Our results identify a problem in combining selection and delivery tasks. The insights are also applicable to social funds, decentralisation and participatory projects.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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      custom: Copyright of Journal of Development Studies is the property of Taylor & Francis Ltd and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use.
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