IDEAS home Printed from https://ideas.repec.org/a/eee/jeborg/v149y2018icp239-268.html
   My bibliography  Save this article

Receptiveness to advice, cognitive ability, and technology adoption

Author

Listed:
  • Barham, Bradford L.
  • Chavas, Jean-Paul
  • Fitz, Dylan
  • Schechter, Laura

Abstract

We construct a model of technology adoption with agents differing on two dimensions: their cognitive ability and their receptiveness to advice. While cognitive ability unambiguously speeds adoption, receptiveness to advice may speed adoption for individuals with low cognitive ability, but slow adoption for individuals with high cognitive ability. We conduct economic experiments measuring US farmers’ cognitive ability and receptiveness to advice and examine how these characteristics impact their speed of adoption of genetically modified (GM) corn seeds. The empirical analysis shows that early adopters are those who are both quite able cognitively and not receptive to advice.

Suggested Citation

  • Barham, Bradford L. & Chavas, Jean-Paul & Fitz, Dylan & Schechter, Laura, 2018. "Receptiveness to advice, cognitive ability, and technology adoption," Journal of Economic Behavior & Organization, Elsevier, vol. 149(C), pages 239-268.
  • Handle: RePEc:eee:jeborg:v:149:y:2018:i:c:p:239-268
    DOI: 10.1016/j.jebo.2017.12.025
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S016726811730375X
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jebo.2017.12.025?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Michael Kremer & Edward Miguel, 2007. "The Illusion of Sustainability," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(3), pages 1007-1065.
    2. Lori Beaman & Ariel BenYishay & Jeremy Magruder & Ahmed Mushfiq Mobarak, 2021. "Can Network Theory-Based Targeting Increase Technology Adoption?," American Economic Review, American Economic Association, vol. 111(6), pages 1918-1943, June.
    3. Birkhaeuser, Dean & Evenson, Robert E & Feder, Gershon, 1991. "The Economic Impact of Agricultural Extension: A Review," Economic Development and Cultural Change, University of Chicago Press, vol. 39(3), pages 607-650, April.
    4. Garth Saloner & Andrea Shepard, 1995. "Adoption of Technologies with Network Effects: An Empirical Examination of the Adoption of Teller Machines," RAND Journal of Economics, The RAND Corporation, vol. 26(3), pages 479-501, Autumn.
    5. Klenow, Peter J. & Rodriguez-Clare, Andres, 1997. "Economic growth: A review essay," Journal of Monetary Economics, Elsevier, vol. 40(3), pages 597-617, December.
    6. Georg Weizsacker, 2010. "Do We Follow Others When We Should? A Simple Test of Rational Expectations," American Economic Review, American Economic Association, vol. 100(5), pages 2340-2360, December.
    7. Jovanovic, Boyan & Nyarko, Yaw, 1996. "Learning by Doing and the Choice of Technology," Econometrica, Econometric Society, vol. 64(6), pages 1299-1310, November.
    8. Foster, Andrew D & Rosenzweig, Mark R, 1995. "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1176-1209, December.
    9. Oriana Bandiera & Imran Rasul, 2006. "Social Networks and Technology Adoption in Northern Mozambique," Economic Journal, Royal Economic Society, vol. 116(514), pages 869-902, October.
    10. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-298, January.
    11. Muriel Niederle & Lise Vesterlund, 2007. "Do Women Shy Away From Competition? Do Men Compete Too Much?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(3), pages 1067-1101.
    12. Diego Comin & Bart Hobijn, 2010. "An Exploration of Technology Diffusion," American Economic Review, American Economic Association, vol. 100(5), pages 2031-2059, December.
    13. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
    14. Pascaline Dupas, 2014. "Short‐Run Subsidies and Long‐Run Adoption of New Health Products: Evidence From a Field Experiment," Econometrica, Econometric Society, vol. 82(1), pages 197-228, January.
    15. Abhijit Banerjee & Arun G. Chandrasekhar & Esther Duflo & Matthew O. Jackson, 2012. "The Diffusion of Microfinance," NBER Working Papers 17743, National Bureau of Economic Research, Inc.
    16. Timothy G. Conley & Christopher R. Udry, 2010. "Learning about a New Technology: Pineapple in Ghana," American Economic Review, American Economic Association, vol. 100(1), pages 35-69, March.
    17. Andrew D. Foster & Mark R. Rosenzweig, 2010. "Microeconomics of Technology Adoption," Annual Review of Economics, Annual Reviews, vol. 2(1), pages 395-424, September.
    18. Brehmer, Berndt & Hagafors, Roger, 1986. "Use of experts in complex decision making: A paradigm for the study of staff work," Organizational Behavior and Human Decision Processes, Elsevier, vol. 38(2), pages 181-195, October.
    19. Picciotto, Robert & Anderson, Jock R, 1997. "Reconsidering Agricultural Extension," The World Bank Research Observer, World Bank, vol. 12(2), pages 249-259, August.
    20. Tavneet Suri, 2011. "Selection and Comparative Advantage in Technology Adoption," Econometrica, Econometric Society, vol. 79(1), pages 159-209, January.
    21. Thomas Buser & Leonie Gerhards & Joël J. van der Weele, 2016. "Measuring Responsiveness to Feedback as a Personal Trait," Tinbergen Institute Discussion Papers 16-043/I, Tinbergen Institute.
    22. Shawn A Cole & A Nilesh Fernando, 2021. "‘Mobile’izing Agricultural Advice Technology Adoption Diffusion and Sustainability [Dial “a” for agriculture: using ICTs for agricultural extension in development countries]," The Economic Journal, Royal Economic Society, vol. 131(633), pages 192-219.
    23. Elaine M. Liu, 2013. "Time to Change What to Sow: Risk Preferences and Technology Adoption Decisions of Cotton Farmers in China," The Review of Economics and Statistics, MIT Press, vol. 95(4), pages 1386-1403, October.
    24. Greene, William, 2010. "Testing hypotheses about interaction terms in nonlinear models," Economics Letters, Elsevier, vol. 107(2), pages 291-296, May.
    25. Dalal, Reeshad S. & Bonaccio, Silvia, 2010. "What types of advice do decision-makers prefer?," Organizational Behavior and Human Decision Processes, Elsevier, vol. 112(1), pages 11-23, May.
    26. Daniel Stone & Basit Zafar, 2014. "Do we follow others when we should outside the lab? Evidence from the AP top 25," Journal of Risk and Uncertainty, Springer, vol. 49(1), pages 73-102, August.
    27. David Cesarini & Magnus Johannesson & Paul Lichtenstein & Björn Wallace, 2009. "Heritability of Overconfidence," Journal of the European Economic Association, MIT Press, vol. 7(2-3), pages 617-627, 04-05.
    28. Matin Qaim, 2009. "The Economics of Genetically Modified Crops," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 665-694, September.
    29. Diego A. Comin & Martí Mestieri, 2010. "An Intensive Exploration of Technology Diffusion," NBER Working Papers 16379, National Bureau of Economic Research, Inc.
    30. Harvey, Nigel & Fischer, Ilan, 1997. "Taking Advice: Accepting Help, Improving Judgment, and Sharing Responsibility," Organizational Behavior and Human Decision Processes, Elsevier, vol. 70(2), pages 117-133, May.
    31. Karlan, Dean & Knight, Ryan & Udry, Christopher, 2015. "Consulting and capital experiments with microenterprise tailors in Ghana," Journal of Economic Behavior & Organization, Elsevier, vol. 118(C), pages 281-302.
    32. Sushil Bikhchandani & David Hirshleifer & Ivo Welch, 1998. "Learning from the Behavior of Others: Conformity, Fads, and Informational Cascades," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 151-170, Summer.
    33. Bradford L. Barham & Jean-Paul Chavas & Dylan Fitz & Vanessa Ríos-Salas & Laura Schechter, 2015. "Risk, learning, and technology adoption," Agricultural Economics, International Association of Agricultural Economists, vol. 46(1), pages 11-24, January.
    34. Annemie Maertens, 2017. "Who Cares What Others Think (or Do)? Social Learning and Social Pressures in Cotton Farming in India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(4), pages 988-1007.
    35. Läpple, Doris & Rensburg, Tom Van, 2011. "Adoption of organic farming: Are there differences between early and late adoption?," Ecological Economics, Elsevier, vol. 70(7), pages 1406-1414, May.
    36. Bardhan, Pranab & Udry, Christopher, 1999. "Development Microeconomics," OUP Catalogue, Oxford University Press, number 9780198773719.
    37. Phillips, Jean M., 1999. "Antecedents of Leader Utilization of Staff Input in Decision-Making Teams," Organizational Behavior and Human Decision Processes, Elsevier, vol. 77(3), pages 215-242, March.
    38. Bonaccio, Silvia & Dalal, Reeshad S., 2006. "Advice taking and decision-making: An integrative literature review, and implications for the organizational sciences," Organizational Behavior and Human Decision Processes, Elsevier, vol. 101(2), pages 127-151, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Back, Camila & Morana, Stefan & Spann, Martin, 2023. "When do robo-advisors make us better investors? The impact of social design elements on investor behavior," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 103(C).
    2. Xingguang Li & Wen Xue & Xuexi Huo, 2023. "Fertilizer application training programs, the adoption of formula fertilization techniques and agricultural productivity: Evidence from 691 apple growers in China," Natural Resources Forum, Blackwell Publishing, vol. 47(2), pages 298-316, May.
    3. Wallace E. Huffman, 2020. "Human Capital and Adoption of Innovations: Policy Implications," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(1), pages 92-99, March.
    4. Jean‐Paul Chavas & Céline Nauges, 2020. "Uncertainty, Learning, and Technology Adoption in Agriculture," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(1), pages 42-53, March.
    5. Mao, Hui & Zhou, Li & Ying, RuiYao & Pan, Dan, 2021. "Time Preferences and green agricultural technology adoption: Field evidence from rice farmers in China," Land Use Policy, Elsevier, vol. 109(C).
    6. Läpple, Doris & Maertens, Annemie & Barham, Bradford L., 2023. "Communication and advice-taking: Evidence from a laboratory experiment," Economics Letters, Elsevier, vol. 228(C).
    7. Camille Boudot‐Reddy & Anita Mukherjee, 2021. "Improving the adoption of household health products: A sales experiment with chlorine tablets," Health Economics, John Wiley & Sons, Ltd., vol. 30(3), pages 623-641, March.
    8. Aminata Diagne & Lota Tamini & Patrick Mundler, 2019. "Factors Explaining the Dynamics of Agricultural Technology Adoption: Evidence from Senegal's Rain Maize Farmers," CIRANO Working Papers 2019s-08, CIRANO.
    9. Annemie Maertens & Hope Michelson & Vesall Nourani, 2021. "How Do Farmers Learn from Extension Services? Evidence from Malawi," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 569-595, March.
    10. Do‐il Yoo & Jean‐Paul Chavas, 2023. "Dynamic modeling of biotechnology adoption with individual versus social learning: An application to US corn farmers," Agribusiness, John Wiley & Sons, Ltd., vol. 39(1), pages 148-166, January.
    11. Tjernström, Emilia & Lybbert, Travis J. & Hernández, Rachel Frattarola & Correa, Juan Sebastian, 2021. "Learning by (virtually) doing: Experimentation and belief updating in smallholder agriculture," Journal of Economic Behavior & Organization, Elsevier, vol. 189(C), pages 28-50.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kazushi Takahashi & Rie Muraoka & Keijiro Otsuka, 2020. "Technology adoption, impact, and extension in developing countries’ agriculture: A review of the recent literature," Agricultural Economics, International Association of Agricultural Economists, vol. 51(1), pages 31-45, January.
    2. Kondylis, Florence & Mueller, Valerie, 2012. "Seeing is Believing? Evidence from a Demonstration Plot Experiment in Mozambique:," MSSP working papers 1, International Food Policy Research Institute (IFPRI).
    3. Apoorv Gupta & Jacopo Ponticelli & Andrea Tesei, 2020. "Language Barriers, Technology Adoption and Productivity: Evidence from Agriculture in India," NBER Working Papers 27192, National Bureau of Economic Research, Inc.
    4. Ram Fishman & Stephen C. Smith & Vida Bobic & Munshi Sulaiman, 2022. "Can Agricultural Extension and Input Support Be Discontinued? Evidence from a Randomized Phaseout in Uganda," The Review of Economics and Statistics, MIT Press, vol. 104(6), pages 1273-1288, November.
    5. Annemie Maertens & Hope Michelson & Vesall Nourani, 2021. "How Do Farmers Learn from Extension Services? Evidence from Malawi," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 569-595, March.
    6. Arslan, Cansın & Wollni, Meike & Oduol, Judith & Hughes, Karl, 2022. "Who communicates the information matters for technology adoption," World Development, Elsevier, vol. 158(C).
    7. Anna Folke Larsen, 2015. "The network at work: Diffusion of banana cultivation in Tanzania," CAM Working Papers camwp2015_01, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
    8. Raphaël Soubeyran, 2019. "Technology adoption and pro-social preferences," CEE-M Working Papers halshs-02291905, CEE-M, Universtiy of Montpellier, CNRS, INRA, Montpellier SupAgro.
    9. B Kelsey Jack, "undated". "Market Inefficiencies and the Adoption of Agricultural Technologies in Developing Countries," CID Working Papers 50, Center for International Development at Harvard University.
    10. Anna Folke Larsen, 2019. "When knowledgeable neighbors also share seedlings: diffusion of banana cultivation in Tanzania," Agricultural Economics, International Association of Agricultural Economists, vol. 50(1), pages 51-65, January.
    11. Matsumoto, Tomoya, 2014. "Disseminating new farming practices among small scale farmers: An experimental intervention in Uganda," Journal of the Japanese and International Economies, Elsevier, vol. 33(C), pages 43-74.
    12. Apoorv Gupta & Jacopo Ponticelli & Andrea Tesei, 2019. "Technology Adoption and Access to Credit via Mobile Phones," Working Papers 892, Queen Mary University of London, School of Economics and Finance.
    13. He, Pan & Lovo, Stefania & Veronesi, Marcella, 2022. "Social networks and renewable energy technology adoption: Empirical evidence from biogas adoption in China," Energy Economics, Elsevier, vol. 106(C).
    14. Chowdhury, Shyamal & Satish, Varun & Sulaiman, Munshi & Sun, Yi, 2022. "Sooner rather than later: Social networks and technology adoption," Journal of Economic Behavior & Organization, Elsevier, vol. 203(C), pages 466-482.
    15. Kaywana Raeburn & Sonia Laszlo & Jim Warnick, 2023. "Resolving ambiguity as a public good: experimental evidence from Guyana," Theory and Decision, Springer, vol. 95(1), pages 79-107, July.
    16. Jean‐Paul Chavas & Céline Nauges, 2020. "Uncertainty, Learning, and Technology Adoption in Agriculture," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(1), pages 42-53, March.
    17. Jing Cai & Alain De Janvry & Elisabeth Sadoulet, 2015. "Social Networks and the Decision to Insure," American Economic Journal: Applied Economics, American Economic Association, vol. 7(2), pages 81-108, April.
    18. Tisorn Songsermsawas & Kathy Baylis & Ashwini Chhatre & Hope Michelson, 2014. "Can Peers Improve Agricultural Productivity?," CESifo Working Paper Series 4958, CESifo.
    19. Mekonnen, Daniel Ayalew & Gerber, Nicolas & Matz, Julia Anna, 2018. "Gendered Social Networks, Agricultural Innovations, and Farm Productivity in Ethiopia," World Development, Elsevier, vol. 105(C), pages 321-335.
    20. Magnan, Nicholas & Spielman, David J. & Lybbert, Travis J. & Gulati, Kajal, 2015. "Leveling with friends: Social networks and Indian farmers' demand for a technology with heterogeneous benefits," Journal of Development Economics, Elsevier, vol. 116(C), pages 223-251.

    More about this item

    Keywords

    Technology adoption; Learning; Receptiveness to advice; Responsiveness to advice; Advice-taking; Cognitive ability; Economic experiments; Genetically modified seeds;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jeborg:v:149:y:2018:i:c:p:239-268. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jebo .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.