Abstract
Even with the expansion of modern medicine, African traditional healers remain popular. This paper advances an economic perspective of healers to contribute to an explanation of this phenomenon. An important element of their practice has previously been ignored: healers use and are able to enforce outcome-contingent contracts. This, in turn, allows them to credibly deliver high quality care. Data on patient choice of health facility from Cameroun shows that patients choose healers over modern facilities for reasons that can be directly traced to the advantages inherent in the use of outcome-contingent contracts.
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