MBC Game Theory: Why Incentives Work
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Fintech 2 min read

MBC Game Theory: Why Incentives Work

MB
Maputo Bridge Capital
Maputo Bridge Capital

MBC Game Theory: Why Incentives Work

Game theory asks: in a system where everyone acts in self-interest, what outcome emerges?

MBC analyzed a 3-player game: Farmer {Accept, Informal} x Investor {Deploy, Hold} x Agent {Honest, Collude}. 8 strategy combinations.

Without MBC: Nash Equilibrium is the poverty trap. Farmer goes informal, investor holds capital, agent colludes. Everyone loses.

With MBC's mechanisms — satellite verification (farmer can't lie about crops), performance commissions (agent only earns after repayment), BIT protection (investor has legal recourse) — equilibrium shifts to optimal: Farmer accepts MBC, investor deploys, agent is honest. Everyone wins.

MBC doesn't hope incentives work. MBC proves it mathematically.

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game theory agricultureNash equilibriumincentive designfarmer investor agentagricultural economicsmechanism design

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