ANSWER THE FOLLIWNG WITH THE REQUIREMENT , GIVE EXAMPLE PLEASE THANKS

1. How does what I labeled "M&M" theory explain the complexity of the delivery of public services? (what are they+example)

(2 points) Measurability & monitoring (a) hard to define (b) it is hard to incentivize employees without imposing all the risks on them.

(2 points) Multitasking results because services are multidimensional, and thus agents will substitute away from tasks with noisy measures.

(2 points) The provision of public services involves multiple principals - society, agents affected by production & consumption externalities. This multiplicity of principals can end up diluting the incentives (substitution) or some freeride (complementary).

2. Besley & Ghatak updated this theory to focus on the core issues of mission, motivation, and

matching. Explain how these issues matter for the delivery of public services?

(2 points) Mission: widely shared culture, warmly endorsed by operators and managers. It replacesprofit maximization & economizes monetary incentives. It is determined and maintained by principals. Unfortunately, it introduces rigidity and conservative approach

(2 points) Motivation often nonmonetary and intrinsic. It leads agent to commit costly effort; e.g., altruism. It is crowded out by monetary rewards or mission drift. It serves as the basis for how incentivize & who joins ...

(2 points) Matching is the process by which principals and agents come together to create anorganization. It is based on perceived mission. It is achieved by competitive markets (e.g., product, labor, capital), and it increases efficiency in supply of public service