Institutional design for credence goods: Can the existence of financial incentive be problematic? Evidences from childbirth system of Bangladesh. Issue 14 (26th October 2018)

• Record Type: Journal Article
• Authors: Baniamin, Hasan Muhammad; Jamil, Ishtiaq
• Is Part Of: International journal of public administration. Volume 41:Issue 14(2018)
• Page Start: 1192
• Page End: 1203
• Publication Date: 2018-10-26
• Subjects: childbirth system -- credence goods -- developing country -- incentive based system -- trust; Public administration -- Periodicals; 351.05
• DOI: 10.1080/01900692.2017.1362434
• Languages: English
• ISSNs: 0190-0692

Abstract

ABSTRACT: The introduction of an incentive system in order to increase the provision of credence goods such as health services can be problematic. This article identifies the possible magnitude of overtreatment by physicians in private clinics compared with the situation in government and nongovernment health facilities in Bangladesh. The five to ten times higher volume of cesarean childbirths in private clinics (higher incentive institutions) compared with the volume in government/NGOs health facilities (lower incentive institutions) is indicative of the problem of overtreatment. This problem may become acute where there is only one private clinic in an area; however, the mere increase in the number of private clinics may not solve the problem.