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The Value of Information in Technology Adoption

Author

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  • Islam, Asad

    (Monash University)

  • Ushchev, Philip

    (National Research University)

  • Zenou, Yves

    (Monasch University)

  • Zhang, Xin

    (Monash University)

Abstract

We develop a theoretical model in which technology adoption decisions are based on the information received from others about the quality of a new technology and on their risk attitudes. We test the predictions of this model using a randomized field experiment in Bangladesh. We show that the share of treated farmers who receive better training in System of Rice Intensification (SRI) technology have a high positive impact on the adoption rate of untreated farmers. We also find that untreated farmers who are more risk-averse tend to adopt the technology less and are less influenced by their treated peers. Our results thus indicate that spillover effects are important in technology adoption and that information transmission about the quality of the technology matters.

Suggested Citation

  • Islam, Asad & Ushchev, Philip & Zenou, Yves & Zhang, Xin, 2020. "The Value of Information in Technology Adoption," Working Paper Series 1363, Research Institute of Industrial Economics.
  • Handle: RePEc:hhs:iuiwop:1363
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    More about this item

    Keywords

    Technology adoption; Peers; Risk attitude; RCT; Bangladesh;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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