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.

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