Using information markets in grantmaking. An assessment of the issues involved and an application to Italian banking foundations

The likelihood of success of grantmaking on large scale projects depends in general on pieces of information widely dispersed and privately held by recipients, public agencies, nongovernmental organizations and other interested parties. In this paper we discuss how philanthropists could e§ectively make use of suitably designed information markets to help them gathering dispersed knowledge and beliefs on the potential for social impact of innovative projects on the one hand, and in supporting the deliberation process regarding the allocation of grants on the other one.