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Motives for Sharing in Developing Countries: Experimental Evidence from Jakarta

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  • Ado, Akifumi
  • Kurosaki, Takashi
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    Abstract

    We implemented laboratory experiments in Jakarta, Indonesia, to identify motives for sharing, including baseline altruism, directed altruism, sanction aversion, and reciprocity. The study area is located on the periphery of the Metropolis of Jakarta, many of whose residents are migrants and are closely connected with informal institutions such as Arisan, a rotating savings and credit association in Indonesia. Using data from sample households, the experimental results show that transfers based on baseline altruism accounted for the largest amount.Because the difference in the transferred amounts arising from the revelation of dictators' identities was statistically insignificant, we combined the four motives into two: preference-related motives (baseline and directed altruism) and incentive-related motives (sanction aversion and reciprocity) for the examination of their association with real world behavior regarding sharing. The empirical results suggest the importance of incentive-related motives in explaining variations in the amount of income transfers received from and sent to others.

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    Bibliographic Info

    Paper provided by Institute of Economic Research, Hitotsubashi University in its series PRIMCED Discussion Paper Series with number 53.

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    Length: 28 p.
    Date of creation: Mar 2014
    Date of revision:
    Handle: RePEc:hit:primdp:53

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    Keywords: sharing; altruism; reciprocity; network; experimental economics;

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    1. Townsend, R.M., 1991. "Risk and Insurance in Village India," University of Chicago - Economics Research Center 91-3, Chicago - Economics Research Center.
    2. Marcel Fafchamps & Susan Lund, 2000. "Risk-Sharing Networks in Rural Philippines," Economics Series Working Papers 10, University of Oxford, Department of Economics.
    3. Ligon, Ethan & Schechter, Laura, 2011. "Motives for sharing in social networks," CUDARE Working Paper Series 1120, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
    4. Marcel Fafchamps & Flore Gubert, 2005. "The Formation of Risk Sharing Networks," Economics Series Working Papers GPRG-WPS-037, University of Oxford, Department of Economics.
    5. Juan Camilo Cardenas & Jeffrey Carpenter, 2008. "Behavioural Development Economics: Lessons from Field Labs in the Developing World," Journal of Development Studies, Taylor & Francis Journals, vol. 44(3), pages 311-338.
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