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Funding a new bridge in rural Vietnam: a field experiment on social influence and default contributions

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  • By Fredrik Carlsson
  • Olof Johansson-Stenman
  • Pham Khanh Nam

Abstract

Public goods provision is essential for economic development. Yet there is limited evidence regarding contributions to local public goods in developing countries. This article analyses a field experiment where all 200 households in a village in rural Vietnam make real contributions to a public good that is very important for them in daily life—a bridge. We study the role of social influence (that people may be more willing to co-operate if others do) and the effects of the default alternative in the choice situation. We find significant and substantial (in the order of magnitude of 15–25%) effects of both social influence and defaults but only when providing low reference or default contributions.

Suggested Citation

  • By Fredrik Carlsson & Olof Johansson-Stenman & Pham Khanh Nam, 2015. "Funding a new bridge in rural Vietnam: a field experiment on social influence and default contributions," Oxford Economic Papers, Oxford University Press, vol. 67(4), pages 987-1014.
    • Handle: RePEc:oup:oxecpp:v:67:y:2015:i:4:p:987-1014.
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    File URL: http://hdl.handle.net/10.1093/oep/gpv039
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    Cited by:

    1. Salem Ahmed Alabdali & Salvatore Flavio Pileggi & Dilek Cetindamar, 2023. "Influential Factors, Enablers, and Barriers to Adopting Smart Technology in Rural Regions: A Literature Review," Sustainability, MDPI, vol. 15(10), pages 1-38, May.
    2. Ghesla, Claus & Grieder, Manuel & Schubert, Renate, 2020. "Nudging the poor and the rich – A field study on the distributional effects of green electricity defaults," Energy Economics, Elsevier, vol. 86(C).
    3. Reinhard, Stijn & Naranjo, María A. & Polman, Nico & Hennen, Wil, 2022. "Modelling choices and social interactions with a threshold public good: Investment decisions in a polder in Bangladesh," Land Use Policy, Elsevier, vol. 113(C).
    4. Briscese, Guglielmo, 2019. "Generous by default: A field experiment on designing defaults that align with past behaviour on charitable giving," Journal of Economic Psychology, Elsevier, vol. 74(C).
    5. Markussen, Thomas & Sharma, Smriti & Singhal, Saurabh & Tarp, Finn, 2021. "Inequality, institutions and cooperation," European Economic Review, Elsevier, vol. 138(C).
    6. Liu, Jia & Sonntag, Axel & Zizzo, Daniel John, 2022. "Information defaults in repeated public good provision," Journal of Economic Behavior & Organization, Elsevier, vol. 197(C), pages 356-369.
    7. Dannenberg, Astrid & Diekert, Florian & Händel, Philipp, 2022. "The effects of social information and luck on risk behavior of small-scale fishers at Lake Victoria," Journal of Economic Psychology, Elsevier, vol. 90(C).
    8. Berazneva, Julia & Maertens, Annemie & Mhango, Wezi & Michelson, Hope, 2023. "Paying for agricultural information in Malawi: The role of soil heterogeneity," Journal of Development Economics, Elsevier, vol. 165(C).

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