You always hurt the ones you love: Benin moto-taxi edition

In a cool new paper in the journal of African Economies (older, ungated, outlaw version available here), our colleague and friend Moussa Blimpo studies contractual arrangements in the moto-taxi market in Benin.

Among his interesting findings is the idea that the bonds of trust/kinship tend to block the socially optimal contract between moto owner and moto driver and “induces drivers to exert excessive effort, leading to adverse outcomes like traffic accidents”.

Hat tip to Ken Opalo.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s