2019
DOI: 10.31219/osf.io/tmpqj
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Banking on cooperation: An evolutionary analysis of microfinance loan repayment behaviour

Abstract: Microfinance is an economic development intervention that involves credit provision to low-income entrepreneurs in order to stimulate economic growth and reduce poverty. Lenders typically require joint liability, where borrowers share the responsibility of repaying a group loan. We argue that this lending practice is subject to a fundamental cooperation problem similar to that faced by humans and other organisms in nature across many domains, and that consequently evolutionary theories of cooperation from the … Show more

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