Problem
1. Describe the advantages and disadvantages of microlenders that are privately owned relative to cooperatives.
2. What is yardstick competition? How does it differ from more general uses of competition? Illustrate your answer for the particular case of microlenders.
3. Describe as many situations as you can in which there is a principal and an agent in the context of microlenders. How do the examples relate to one another? Do the proposed solutions to any one of the principal-agent problems you identified help you think about solutions to the other principal-agent problems?