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The Good Wife? Reputation Dynamics and Financial Decision-Making inside the Household

Author

Listed:
  • Nina Buchmann

    (Institute of Agricultural Sciences [Zürich] - ETH Zürich - Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology [Zürich])

  • Pascaline Dupas

    (Stanford University)

  • Roberta Ziparo

    (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

Abstract

We study reputation dynamics within the household in a setting where women regularly receive transfers from their husbands for household purchases. We propose a signaling model in which wives try to maintain a good reputation in the eyes of their husbands to receive high transfers. This leads them to (i) avoid risky purchases (goods with unknown returns) and (ii) knowingly overuse low-return goods to hide bad purchase decisions—we call this the intrahousehold sunk cost effect. We present supportive evidence for the model from a series of experiments with married couples in rural Malawi.

Suggested Citation

  • Nina Buchmann & Pascaline Dupas & Roberta Ziparo, 2025. "The Good Wife? Reputation Dynamics and Financial Decision-Making inside the Household," Post-Print hal-05066954, HAL.
    • Handle: RePEc:hal:journl:hal-05066954
    DOI: 10.1257/aer.20230393
    Note: View the original document on HAL open archive server: https://hal.science/hal-05066954v1
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    Cited by:

    1. Carlotta Nani, 2024. "Perceived abilities and gender stereotypes within the household: experimental evidence from Bangladesh," IHEID Working Papers 19-2024, Economics Section, The Graduate Institute of International Studies.

    More about this item

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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