IDEAS home Printed from https://ideas.repec.org/p/fpr/ifprid/1302.html
   My bibliography  Save this paper

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.ifpri.org/sites/default/files/publications/ifpridp01302.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Sabina Alkire and Maria Emma Santos, "undated". "Acute Multidimensional Poverty: A New Index for Developing Countries," OPHI Working Papers ophiwp038, Queen Elizabeth House, University of Oxford.
    2. 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.
    3. Munshi, Kaivan & Myaux, Jacques, 2006. "Social norms and the fertility transition," Journal of Development Economics, Elsevier, vol. 80(1), pages 1-38, June.
    4. 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.
    5. Birner, Regina & Davis, Kristin & Pender, John & Nkonya, Ephraim & Anandajayasekeram, Pooniah & Ekboir, Javier M. & Mbabu, Adiel N. & Spielman, David J. & Horna, Daniela & Benin, Samuel & Kisamba-Muge, 2006. "From "best practice" to "best fit": a framework for designing and analyzing pluralistic agricultural advisory services," Research briefs 4, International Food Policy Research Institute (IFPRI).
    6. 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.
    7. Besley, T. & Case, A., 1994. "Diffusion as a Learning Process: Evidence from HYV Cotton," Papers 174, Princeton, Woodrow Wilson School - Development Studies.
    8. Esther Duflo & Emmanuel Saez, 2003. "The Role of Information and Social Interactions in Retirement Plan Decisions: Evidence from a Randomized Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 118(3), pages 815-842.
    9. Emily Oster & Rebecca Thornton, 2012. "Determinants Of Technology Adoption: Peer Effects In Menstrual Cup Take-Up," Journal of the European Economic Association, European Economic Association, vol. 10(6), pages 1263-1293, December.
    10. repec:pri:rpdevs:besley_case_diffusion is not listed on IDEAS
    11. Lybbert, Travis J. & Magnan, Nicholas & Spielman, David J. & Bhargava, Anil K. & Gulati, Kajal, 2013. "Targeting technology to reduce poverty and conserve resources: Experimental delivery of laser land leveling to farmers in Uttar Pradesh, India:," IFPRI discussion papers 1274, International Food Policy Research Institute (IFPRI).
    12. Abhijit V. Banerjee, 1992. "A Simple Model of Herd Behavior," The Quarterly Journal of Economics, Oxford University Press, vol. 107(3), pages 797-817.
    13. Santos, Paulo & Barrett, Christopher B., 2010. "Identity, Interest and Information Search in a Dynamic Rural Economy," World Development, Elsevier, vol. 38(12), pages 1788-1796, December.
    14. Charles F. Manski, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," Review of Economic Studies, Oxford University Press, vol. 60(3), pages 531-542.
    15. Munshi, Kaivan, 2004. "Social learning in a heterogeneous population: technology diffusion in the Indian Green Revolution," Journal of Development Economics, Elsevier, vol. 73(1), pages 185-213, February.
    16. Annemie Maertens & Christopher B. Barrett, 2013. "Measuring Social Networks' Effects on Agricultural Technology Adoption," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(2), pages 353-359.
    17. repec:oup:ajagec:v:99:y:2017:i:4:p:988-1007. is not listed on IDEAS
    18. Kathryn Vasilaky, 2013. "Female Social Networks and Farmer Training: Can Randomized Information Exchange Improve Outcomes?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(2), pages 376-383.
    19. Philip S. Babcock & John L. Hartman, 2010. "Networks and Workouts: Treatment Size and Status Specific Peer Effects in a Randomized Field Experiment," NBER Working Papers 16581, National Bureau of Economic Research, Inc.
    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. 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).
    2. Magnan, Nicholas, 2015. "Property rights enforcement and no-till adoption in crop-livestock systems," Agricultural Systems, Elsevier, vol. 134(C), pages 76-83.
    3. 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.
    4. Magnan, Nicholas & Spielman, David J. & Gulati, Kajal & Lybbert, Travis, 2015. "Information Networks among Women and Men and the Demand for an Agricultural Technology in India," 2015 Conference, August 9-14, 2015, Milan, Italy 212209, International Association of Agricultural Economists.
    5. 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.

    More about this item

    Keywords

    productivity; lasers; Technology transfer;

    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:fpr:ifprid:1302. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/ifprius.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.