contract enforcement device. It turns out that reciprocity generates a significant increase in effort levels relative to the … prediction based on selfish preferences. Moreover, it gives rise to a considerable mitigation of the contract enforcement problem …

We conduct the first field experiment of a performance-contingent microfinance contract. A large food multinational … Kenya, we compare asset financing under a traditional debt contract to three alternatives: (i) a novel equity-like financing … contract, (ii) a hybrid debt-equity contract, and (iii) an index-insurance financing contract. Experimental results reveal …