Microfinance Institution – Kiva.org

Social Dilemmas:

Problems of fraud increase with scale

- Prisoner’s Dilemma

- borrowers can just run with the money instead of cooperating

- tendency to loan is better when you return your loan

- iteration implemented through rating system by country, by field partner, entrepreneur recommendations

- Rules for Losing

- not worth village’s effort to be accountable for another villager’s loans - diversifying to borrowers – reducing damage resulting from prisoner’s dilemma

Bad change:

- Removing intermediary. Lender must directly administer loan to entrepreneur

- Sponsor high volume donor/lender on trip to meet successful entrpreneur