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Motives for Sharing in Developing Countries: Experimental Evidence from Jakarta

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  • Ado, Akifumi
  • Kurosaki, Takashi

Abstract

We implemented laboratory experiments in Jakarta, Indonesia, to identify motives for sharing, including baseline altruism, directed altruism, sanction aversion, and reciprocity. The study area is located on the periphery of the Metropolis of Jakarta, many of whose residents are migrants and are closely connected with informal institutions such as Arisan, a rotating savings and credit association in Indonesia. Using data from sample households, the experimental results show that transfers based on baseline altruism accounted for the largest amount.Because the difference in the transferred amounts arising from the revelation of dictators' identities was statistically insignificant, we combined the four motives into two: preference-related motives (baseline and directed altruism) and incentive-related motives (sanction aversion and reciprocity) for the examination of their association with real world behavior regarding sharing. The empirical results suggest the importance of incentive-related motives in explaining variations in the amount of income transfers received from and sent to others.

Suggested Citation

  • Ado, Akifumi & Kurosaki, Takashi, 2014. "Motives for Sharing in Developing Countries: Experimental Evidence from Jakarta," PRIMCED Discussion Paper Series 53, Institute of Economic Research, Hitotsubashi University.
  • Handle: RePEc:hit:primdp:53
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    File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/26483/1/No53-dp.pdf
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    References listed on IDEAS

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    1. Ligon, Ethan & Schechter, Laura, 2012. "Motives for sharing in social networks," Journal of Development Economics, Elsevier, vol. 99(1), pages 13-26.
    2. Townsend, Robert M, 1994. "Risk and Insurance in Village India," Econometrica, Econometric Society, vol. 62(3), pages 539-591, May.
    3. Fafchamps, Marcel & Lund, Susan, 2003. "Risk-sharing networks in rural Philippines," Journal of Development Economics, Elsevier, vol. 71(2), pages 261-287, August.
    4. Juan Camilo Cardenas & Jeffrey Carpenter, 2008. "Behavioural Development Economics: Lessons from Field Labs in the Developing World," Journal of Development Studies, Taylor & Francis Journals, vol. 44(3), pages 311-338.
    5. Fafchamps, Marcel & Gubert, Flore, 2007. "The formation of risk sharing networks," Journal of Development Economics, Elsevier, pages 326-350.
    6. repec:dau:papers:123456789/4392 is not listed on IDEAS
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    Cited by:

    1. Ligon, Ethan & Schechter, Laura, 2017. "Structural experimentation to distinguish between models of risk sharing with frictions in rural Paraguay," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt9891t8g3, Department of Agricultural & Resource Economics, UC Berkeley.

    More about this item

    Keywords

    sharing; altruism; reciprocity; network; experimental economics;

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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