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Present bias predicts low adoption of profitable technologies: The case of livestock vaccination in northern Laos

Author

Listed:
  • Christian Creed

    (Monash University)

  • Paulo Santos

    (Monash University)

Abstract

Can behavioural characteristics explain the low adoption of profitable technologies? We explore this question by quantifying the importance of present bias on the decision to vaccinate cattle against foot-and-mouth disease, a simple and well-known technology that despite its high returns is largely overlooked. Our results show that livestock producers who exhibit a stronger present bias are much less likely to vaccinate their cattle, an effect which is robust to a large set of control variables (including wealth and access to information), larger than the effect of any other observed covariate and robust to plausible assumptions about the importance of unobserved determinants of adoption. We discuss some of the potential implications of these results for the design of vaccine delivery and to other policies that aim to overcome self-control problems.

Suggested Citation

  • Christian Creed & Paulo Santos, 2023. "Present bias predicts low adoption of profitable technologies: The case of livestock vaccination in northern Laos," Monash Economics Working Papers 2023-03, Monash University, Department of Economics.
    • Handle: RePEc:mos:moswps:2023-03
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    References listed on IDEAS

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    More about this item

    Keywords

    Technology adoption ; vaccination; Foot and Mouth disease; Present bias;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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