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

Author

Listed:
  • 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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    More about this item

    Keywords

    Social Networks; Passive Learning; Active Communication; Solar Lantern;
    All these keywords.

    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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