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Passive Learning and Incentivized Communication: A Randomized Controlled Trial in India

Author

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  • Alem, Yonas

  • Dugoua, Eugenie

Abstract

In order to understand the extent of the information barrier to adoption of a household technology, we designed a randomized controlled trial on willingness to pay (WTP) for solar lanterns in India. We gave high quality solar lanterns to randomly selected ‘seed’ households in a non-electrified region of the state of Uttar Pradesh. Three friends of the seed household were randomly assigned to one of the following three groups: control, passive learning and incentivized communication. We elicit WTP from the control group when the seed receives the solar lantern. We elicit WTP from the friends in the passive learning and incentivized communication groups thirty days after the seed receives the solar lantern. We show that passive learning increases WTP by 90% and incentivized communication by 145% relative to the control group. We also show that learning from others is the mechanism that drives the observed WTP by peers.

Suggested Citation

  • Alem, Yonas & Dugoua, Eugenie, 2018. "Passive Learning and Incentivized Communication: A Randomized Controlled Trial in India," EfD Discussion Paper 18-3, Environment for Development, University of Gothenburg.
    • Handle: RePEc:hhs:gunefd:2018_003
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    References listed on IDEAS

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    1. Joshua D. Angrist & Kevin Lang, 2002. "How Important are Classroom Peer Effects? Evidence from Boston's Metco Program," NBER Working Papers 9263, National Bureau of Economic Research, Inc.
    2. 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, President and Fellows of Harvard College, vol. 118(3), pages 815-842.
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    More about this item

    Keywords

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    JEL classification:

    • 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
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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