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Envy and Agricultural Innovation: An Experimental Case Study from Ethiopia

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  • Bereket Kebede
  • Daniel John Zizzo

Abstract

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.

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File URL: http://www.csae.ox.ac.uk/workingpapers/pdfs/csae-wps-2011-06.pdf
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Bibliographic Info

Paper provided by Centre for the Study of African Economies, University of Oxford in its series CSAE Working Paper Series with number 2011-06.

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Date of creation: 2011
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Handle: RePEc:csa:wpaper:2011-06

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Keywords: envy; social preferences; money burning games; agricultural innovations; Ethiopia;

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References

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  1. Yves Breitmoser & Jonathan H.W. Tan & Daniel John Zizzo, 2008. "Understanding Perpetual R&D Races," Discussion Papers 2008-04, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
  2. Gilles Grolleau & Naoufel Mzoughi & Angela Sutan, 2009. "The Impact of Envy-Related Behaviors on Development," Journal of Economic Issues, M.E. Sharpe, Inc., vol. 43(3), pages 795-808, September.
  3. Ben-Ner, Avner & Putterman, Louis & Kong, Fanmin & Magan, Dan, 2004. "Reciprocity in a two-part dictator game," Journal of Economic Behavior & Organization, Elsevier, vol. 53(3), pages 333-352, March.
  4. Zizzo, D.J. & Oswald, A., 2000. "Are People Willing to Pay to Reduce Others' Incomes?," The Warwick Economics Research Paper Series (TWERPS) 568, University of Warwick, Department of Economics.
  5. Simon Gachter & Ernst Fehr, 2000. "Cooperation and Punishment in Public Goods Experiments," American Economic Review, American Economic Association, vol. 90(4), pages 980-994, September.
  6. Mui, V.L., 1992. "The Economics of Envy," Papers 9306, Southern California - Department of Economics.
  7. Daniel John Zizzo & Piers Fleming, 2009. "Social desirability, approval and public good contribution," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 09-11, School of Economics, University of East Anglia, Norwich, UK..
  8. Zizzo, Daniel John, 2003. "Money burning and rank egalitarianism with random dictators," Economics Letters, Elsevier, vol. 81(2), pages 263-266, November.
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Cited by:
  1. Marcel Fafchamps & Bereket Kebede & Daniel John Zizzo, 2014. "Keep Up With the Winners: Experimental Evidence on Risk Taking, Asset Integration, and Peer Effects," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 14-03, School of Economics, University of East Anglia, Norwich, UK..
  2. Sebastian Prediger & Bjoern Vollan & Benedikt Herrmann, 2013. "Resource scarcity, spite and cooperation," Working Papers 2013-10, Faculty of Economics and Statistics, University of Innsbruck.

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