Sharif Digital Repository

The debate on the efficient way of altruism is a long-lasting topic. Economists attempted to model the nonprofit problems with game theory. Buchanan’s Samaritan Dilemma (1975) is one of the early instances, followed mainly by institutionalist researchers. However, no analytical model unifies the credible commitment problems. This thesis investigates two misallocation problems: the recipient’s motivation to deviate resources from the donor’s aims, and the information asymmetry that invokes affluent people to imposter eligible recipients. We probe a specific case representing a subsistence economy. One philanthropist faces agents with identical preferences but heterogeneous wealth, not...