Got (clean) milk? Organization, incentives, and management in Indian dairy cooperatives

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Author(s)Rao, Manaswini
Author(s)Shenoy, Ashish
Date Accessioned2024-02-22T20:51:09Z
Date Available2024-02-22T20:51:09Z
Publication Date2023-08
DescriptionThis article was originally published in Journal of Economic Behavior and Organization. The version of record is available at: https://doi.org/10.1016/j.jebo.2023.06.002. © 2023 Elsevier B.V. All rights reserved. This research was featured in UDaily on 3/22/2024 at: https://www.udel.edu/udaily/2024/march/cleaner-milk-global-agriculture/
AbstractSmallholder producers in developing countries often collaborate in teams that take advantage of scale economies and allocate surplus among members. We experimentally evaluate team-level incentive contracts for quality upgrading among Indian dairy cooperatives where there is a risk of free-riding because individual quality cannot be traced. Incentives improve aggregate quality, with evidence of increased effort from both producers and cooperative managers. However, several managers decline incentive payments when they cannot control how payment information is disclosed to cooperative members. Survey evidence indicates publicity lowers managerial returns, suggesting transparency-based efforts to constrain elites can undermine the core policy goal.
SponsorWe thank Emily Breza and Arun Chandrasekhar for their contribution to the experiment design and implementation; Abhijit Banerjee, Prashant Bharadwaj, Esther Duflo, Aprajit Mahajan, Craig McIntosh, Karthik Muralidharan, Rich Sexton, Monica Singhal, Tavneet Suri, and multiple anonymous referees for helpful comments and guidance; and Sharada Chandankar, Vasudev Naik, H.Y. Gowramma, Vikas Dimble, Madhumitha Hebbar, HyeJin Kim, Devika Lakhote, Bhavya Srinivasan, and Tithee Mukhopadhyay for excellent research support. This study was funded through generous grants from the George and Obie Shultz Fund, the Agricultural Technology Adoption Initiative, USAID Development Innovation Ventures, and the NSF Graduate Research Fellows Program. This study was preregistered with the AEA RCT Registry under ID Number AEARCTR-0000700. Research was conducted with approval from the Committee on the Use of Humans as Experimental Subjects at the Massachusetts Institute of Technology (COUHES #1405006372) and by the Institutional Review Board at the Institute for Financial Management and Research in Chennai, India. The authors have no financial interests to disclose, and no party had the right to review the paper prior to its circulation.
CitationRao, Manaswini, and Ashish Shenoy. “Got (Clean) Milk? Organization, Incentives, and Management in Indian Dairy Cooperatives.” Journal of Economic Behavior & Organization 212 (August 2023): 708–22. https://doi.org/10.1016/j.jebo.2023.06.002.
ISSN2328-7616
URLhttps://udspace.udel.edu/handle/19716/34011
Languageen_US
PublisherJournal of Economic Behavior and Organization
dc.rightsAttribution 4.0 Internationalen
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/
Keywordsquality upgrading
Keywordscooperatives
Keywordsdairy
Keywordselite capture
KeywordsIndia
TitleGot (clean) milk? Organization, incentives, and management in Indian dairy cooperatives
TypeArticle
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