Dynamics of Social and Individual Preferences: Evidence from Madagascar
by Viviana Alexandra Uruena Moyano
Date of Examination:2021-06-04
Date of issue:2021-07-27
Advisor:Prof. Ph.D. Marcela Ibáñez
Referee:Prof. Ph.D. Marcela Ibáñez
Referee:Dr. Holger A. Rau
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Description:Full Doctoral Thesis
Abstract
English
Every day individuals make different decisions that reflect their individual and social preferences. Until not long ago, individual preferences were at the center of the economic theory. Now, social preferences are also considered in the modeling of decision-making as the image of the pure maximizing individual has become obsolete. Yet, most of the published studies still measure and generalize social and individual preferences from individuals living in Western, Educated, Industrialized, Rich and Democratic (WEIRD) countries. This thesis contributes to the literature by exploring social and individual preferences with non-WEIRD subject pools and by linking such preferences to behaviors outside of the experimental controlled setting. This dissertation consists of four different chapters at the intersection of development and behavioral economics. Each chapter explains the motivation, experimental designs and results of the research project. They also include a discussion and valuable elements for future research a policymaking. The chapters part of this dissertation have in common that they are based on experimental data collected in northeastern Madagascar from vanilla farmers and students. In the study region not only quantitative methods were in place, but also qualitative methods such as focus group discussions and participatory methods. They enrich the content and discussion of each of the chapters. Chapters 2 and 3 explore anti-social behaviors and betrayal aversion attitudes which are also linked to crime exposure. Crime is an important challenge in the study region, and hence it is interesting to analyze how crime can affect preferences and behaviors. We find that anti-social behaviors crowd out prosocial behaviors and that individuals expose to crime are likely to behave anti-social in the experiment. Moreover, we find a relation between crime and betrayal aversion attitudes. Yet, we do not find evidence for betrayal aversion attitudes as other papers have shown, nor we can link such attitudes to the production and commercialization decisions of farmers. Chapters 4 and 5 are related to the effects of information provision on preferences and subsequently, on behavior. Both Chapter 4 and 5 provide evidence from experiments in which subjects receive information in the form of audios or videos and thereafter we explore their decision-making. Chapter 4 is related to the topic of environmental conservation. We find that listening to messages framed as imperative-egoistic are effective in driving contributions for the environment. Chapter 5 is related to labor market participation. In this chapter we show that female role models increase the willingness to enter the labor market for both female and male students, but that male role models persuade females in applying for more competitive jobs. In general, both studies are blueprint for scaling up policies.
Keywords: Preferences; Experiments; Vanilla production; Decision-Making; Crime; Pro-social behavior; Betrayal Aversion; Environmental Conservation; Labor Market Participation; Madagascar