As far as I can understand Benquo’s arbitrage argument, it relies on the donor being able to forecast the effectiveness of the program better than the charity itself can. And if you assume the charity and the donor follow the same goal, it makes sense to defer the decision to the better prognosticator.
As far as I can understand Benquo’s arbitrage argument, it relies on the donor being able to forecast the effectiveness of the program better than the charity itself can. And if you assume the charity and the donor follow the same goal, it makes sense to defer the decision to the better prognosticator.