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Follow the leader? A field experiment on social influence

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Abstract

We conduct an artefactual field experiment with farmers in endogenously formed groups in rural Malawi to investigate social influence in risk taking. Our experiment minimizes influence through social learning and social image channels. Treatments vary whether individuals observe the behavior of a formally elected leader, an external leader, or a random peer. Results show that peers are most influential, followed by formal leaders, and then external leaders. Exploratory analysis suggests that farmers follow peers because they extract information from their choices and share risks with them; while other forms of social utility are gained from following the example of leaders.

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  • Kate Ambler & Susan Godlonton & María P. Recalde, 2019. "Follow the leader? A field experiment on social influence," Department of Economics Working Papers 2019-24, Department of Economics, Williams College.
    • Handle: RePEc:wil:wileco:2019-24
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    1. Kate Ambler & Alan de Brauw & Mike Murphy, 2023. "Increasing the adoption of conservation agriculture: A framed field experiment in Northern Ghana," Agricultural Economics, International Association of Agricultural Economists, vol. 54(5), pages 742-756, September.

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    More about this item

    Keywords

    peer effects; risk taking; lab-in-the-field; agriculture; Malawi;
    All these keywords.

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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