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The Effect of Exposure: Evidence from Spatial Choices in Nairobi

Author

Listed:
  • Joshua Dean

    (University of Chicago Booth School of Business)

  • Gabriel Kreindler

    (Harvard University Department of Economics and NBER)

  • Oluchi Mbonu

    (The World Bank)

Abstract

How much do people dislike opportunities they have never been exposed to, and why? We study how exposure affects work location decisions of casual workers. We offer short-term employment and randomize training locations to induce novel exposures. Participants sacrifice 22% of the median daily wage to avoid working in a location never visited before; one hour-long visit eliminates this premium. Workers anticipate two thirds of the effect exposure has on their later preferences. Results are most consistent with perceived fixed costs of exposure rather than sorting or quality uncertainty. Unfamiliar neighborhoods are also less likely to enter workers' consideration sets.

Suggested Citation

  • Joshua Dean & Gabriel Kreindler & Oluchi Mbonu, 2026. "The Effect of Exposure: Evidence from Spatial Choices in Nairobi," Working Papers 2026-24, Becker Friedman Institute for Research In Economics.
    • Handle: RePEc:bfi:wpaper:2026-24
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    File URL: https://repec.bfi.uchicago.edu/RePEc/pdfs/BFI_WP_2026-24.pdf
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    More about this item

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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