Méon, Pierre-Guillaume; Szafarz, Ariane; Labie, Marc - Centre Emile Bernheim, Solvay Brussels School of … - 2009
This paper studies how high-powered incentives may affect credit officers’ discriminatory practices in microfinance …’s behavior with the MFI’s mission. However, since incentives are costly, and the MFI’s budget is limited, even a benevolent … eradication of discriminatory practices. A non discriminating welfare-maximizing MFI may thus prefer paying smaller incentives …