Envy and Agricultural Innovation: An Experimental Case Study from Ethiopia
University of East Anglia - School of International Development and CBESS
Daniel John Zizzo
Newcastle University (UK) - Business School
March 23, 2011
Centre for Behavioural and Experimental Social Science (CBESS) Discussion Paper 11-12
Centre for the Study of African Economies (University of Oxford) 2011-06
The underlying motivations for envy or related social preferences and their impact on agricultural innovations are examined by combining data from money burning experimental game and household survey from Ethiopia. In the first stage of the money burning experimental game, income inequality is induced by providing different endowments and playing a lottery. In the second, people are allowed to decrease (‘burn’) other players’ money at their own expense. Conditional on individual behaviour, experimentally measured envious preferences from others have a negative effect on real life agricultural innovation.
Number of Pages in PDF File: 45
Keywords: envy, social preferences, money burning games, agricultural innovations, Ethiopia
JEL Classification: C93, D03, O12, O55
Date posted: March 29, 2011
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