Social and financial incentives for overcoming a collective action problem

Addressing public health externalities often requires community-level collective action. Due to social norms, each person’s sanitation investment decisions may depend on the decisions of neighbors. We report on a cluster randomized controlled trial conducted with 19,000 households in rural Banglades...

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Main Authors: Bakhtiar, M. Mehrab, Guiteras, Raymond, Levinsohn, James, Mobarak, Ahmed Mushfiq
Format: Journal Article
Language:Inglés
Published: Elsevier 2023
Subjects:
Online Access:https://hdl.handle.net/10568/139964
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author Bakhtiar, M. Mehrab
Guiteras, Raymond
Levinsohn, James
Mobarak, Ahmed Mushfiq
author_browse Bakhtiar, M. Mehrab
Guiteras, Raymond
Levinsohn, James
Mobarak, Ahmed Mushfiq
author_facet Bakhtiar, M. Mehrab
Guiteras, Raymond
Levinsohn, James
Mobarak, Ahmed Mushfiq
author_sort Bakhtiar, M. Mehrab
collection Repository of Agricultural Research Outputs (CGSpace)
description Addressing public health externalities often requires community-level collective action. Due to social norms, each person’s sanitation investment decisions may depend on the decisions of neighbors. We report on a cluster randomized controlled trial conducted with 19,000 households in rural Bangladesh where we grouped neighboring households and introduced (either financial or social recognition) rewards with a joint liability component for the group, or asked each group member to make a private or public pledge to maintain a hygienic latrine. The group financial reward has the strongest impact in the short term (3 months), inducing a 7.5–12.5 percentage point increase in hygienic latrine ownership, but this effect dissipates in the medium term (15 months). In contrast, the public commitment induced a 4.2–6.3 percentage point increase in hygienic latrine ownership in the short term, but this effect persists in the medium term. Non-financial social recognition or a private pledge has no detectable effect on sanitation investments.
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spelling CGSpace1399642025-10-26T13:02:00Z Social and financial incentives for overcoming a collective action problem Bakhtiar, M. Mehrab Guiteras, Raymond Levinsohn, James Mobarak, Ahmed Mushfiq collective action investment hygiene decision making social norms public health finance Addressing public health externalities often requires community-level collective action. Due to social norms, each person’s sanitation investment decisions may depend on the decisions of neighbors. We report on a cluster randomized controlled trial conducted with 19,000 households in rural Bangladesh where we grouped neighboring households and introduced (either financial or social recognition) rewards with a joint liability component for the group, or asked each group member to make a private or public pledge to maintain a hygienic latrine. The group financial reward has the strongest impact in the short term (3 months), inducing a 7.5–12.5 percentage point increase in hygienic latrine ownership, but this effect dissipates in the medium term (15 months). In contrast, the public commitment induced a 4.2–6.3 percentage point increase in hygienic latrine ownership in the short term, but this effect persists in the medium term. Non-financial social recognition or a private pledge has no detectable effect on sanitation investments. 2023-05 2024-03-14T12:08:46Z 2024-03-14T12:08:46Z Journal Article https://hdl.handle.net/10568/139964 en Open Access Elsevier Bakhtiar, M. Mehrab; Guiteras, Raymond; Levinsohn, James; and Mobarak, Ahmed Mushfiq. 2023. Social and financial incentives for overcoming a collective action problem. Journal of Development Economics 162. https://doi.org/10.1016/j.jdeveco.2023.103072
spellingShingle collective action
investment
hygiene
decision making
social norms
public health
finance
Bakhtiar, M. Mehrab
Guiteras, Raymond
Levinsohn, James
Mobarak, Ahmed Mushfiq
Social and financial incentives for overcoming a collective action problem
title Social and financial incentives for overcoming a collective action problem
title_full Social and financial incentives for overcoming a collective action problem
title_fullStr Social and financial incentives for overcoming a collective action problem
title_full_unstemmed Social and financial incentives for overcoming a collective action problem
title_short Social and financial incentives for overcoming a collective action problem
title_sort social and financial incentives for overcoming a collective action problem
topic collective action
investment
hygiene
decision making
social norms
public health
finance
url https://hdl.handle.net/10568/139964
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