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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.

Suggested Citation

  • Bereket Kebede & Daniel John Zizzo, 2011. "Envy and Agricultural Innovation: An Experimental Case Study from Ethiopia," CSAE Working Paper Series 2011-06, Centre for the Study of African Economies, University of Oxford.
  • Handle: RePEc:csa:wpaper:2011-06
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    File URL: http://www.csae.ox.ac.uk/materials/papers/csae-wps-2011-06.pdf
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    References listed on IDEAS

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    1. Gilles Grolleau & Naoufel Mzoughi & Angela Sutan, 2009. "The Impact of Envy-Related Behaviors on Development," Journal of Economic Issues, Taylor & Francis Journals, vol. 43(3), pages 795-808.
    2. Yves Breitmoser & Jonathan Tan & Daniel Zizzo, 2010. "Understanding perpetual R&D races," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 44(3), pages 445-467, September.
    3. 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.
    4. 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..
    5. Mui, Vai-Lam, 1995. "The economics of envy," Journal of Economic Behavior & Organization, Elsevier, vol. 26(3), pages 311-336, May.
    6. 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.
    7. 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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    Citations

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    Cited by:

    1. Prediger, Sebastian & Vollan, Björn & Herrmann, Benedikt, 2014. "Resource scarcity and antisocial behavior," Journal of Public Economics, Elsevier, vol. 119(C), pages 1-9.
    2. Fafchamps, Marcel & Kebede, Bereket & Zizzo, Daniel John, 2015. "Keep up with the winners: Experimental evidence on risk taking, asset integration, and peer effects," European Economic Review, Elsevier, vol. 79(C), pages 59-79.
    3. Cieslik, Katarzyna, 2016. "Moral Economy Meets Social Enterprise Community-Based Green Energy Project in Rural Burundi," World Development, Elsevier, vol. 83(C), pages 12-26.

    More about this item

    Keywords

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

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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