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Leveling with friends: Social networks and indian farmers’ demand for agricultural custom hire services:

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  • Magnan, Nicholas
  • Spielman, David J.
  • Lybbert, Travis J.
  • Gulati, Kajal

Abstract

This research was undertaken to understand how information about a new agricultural technology is transmitted through social networks, and what effect information gained through social networks has on technology demand at the household level. The technology in question is laser land leveling (LLL)-a resource-conserving technology-which we introduced in eastern Uttar Pradesh, India as part of the study. Using an experimental auction, we obtain farmers’ willingness-to-pay for the technology and identify potential adopters. We then randomly select half of these farmers to actually receive LLL services on their land, creating random variation in the number of adopters in each farmer’s social network. We conduct a second auction one year later with the same sample of farmers and estimate network effects on farmers’ updated willingness-to-pay. Four main results emerge: First, exposure to LLL through networks occurs primarily through visits to adopting farmers’ fields. Second, having a first-generation adopter in a farmer’s network increases the farmer’s valuation of LLL by nearly 30 percent on average. Third, the network effects on demand are importantly conditioned on benefits associated with LLL, which implies that learning-rather than mimicry-is driving increases in demand. Fourth, network effects are strongest between poor farmers.

Suggested Citation

  • Magnan, Nicholas & Spielman, David J. & Lybbert, Travis J. & Gulati, Kajal, 2013. "Leveling with friends: Social networks and indian farmers’ demand for agricultural custom hire services:," IFPRI discussion papers 1302, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:ifprid:1302
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    2. Magnan, Nicholas & Spielman, David J. & Gulati, Kajal & Lybbert, Travis J., 2015. "Information networks among women and men and the demand for an agricultural technology in India:," IFPRI discussion papers 1411, International Food Policy Research Institute (IFPRI).
    3. David Alfaro‐Serrano & Tanay Balantrapu & Ritam Chaurey & Ana Goicoechea & Eric Verhoogen, 2021. "Interventions to promote technology adoption in firms: A systematic review," Campbell Systematic Reviews, John Wiley & Sons, vol. 17(4), December.
    4. Magnan, Nicholas, 2015. "Property rights enforcement and no-till adoption in crop-livestock systems," Agricultural Systems, Elsevier, vol. 134(C), pages 76-83.
    5. Krishna, Vijesh V. & Spielman, David J. & Veettil, Prakashan C. & Ghimire, Subash, 2014. "An empirical examination of the dynamics of varietal turnover in Indian wheat:," IFPRI discussion papers 1336, International Food Policy Research Institute (IFPRI).
    6. Ishika Gupta & Prakashan Chellattan Veettil & Stijn Speelman, 2020. "Caste, Social Networks and Variety Adoption," Journal of South Asian Development, , vol. 15(2), pages 155-183, August.
    7. Magnan, Nicholas & Spielman, David J. & Gulati, Kajal, 2013. "Female social networks and learning about a new technology in eastern Uttar Pradesh, India," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150688, Agricultural and Applied Economics Association.
    8. Ma, Xingliang & Spielman, David J. & Nazli, Hina & Zambrano, Patricia & Zaidi, Fatima & Kouser, Shahzad, 2014. "The role of social networks in an imperfect market for agricultural technology products: Evidence on Bt cotton adoption in Pakistan," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 175276, Agricultural and Applied Economics Association.

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