The Tipping Paradox: Why Sending Extra Cash Directly to Global Farmers Can Backfire
New research from the University of Virginia’s Darden School of Business reveals that blockchain-enabled consumer tipping for farmers can backfire. While the technology promises to send money directly to growers, a game-theoretic model shows intermediary firms may exploit tips as subsidies, cutting wholesale prices instead. A beneficial outcome requires moderately attractive farmer alternatives and sufficiently socially conscious consumers.