Short‐run subsidies and long‐run willingness to pay: Learning and anchoring in an agricultural experiment in Ethiopia

A-Tier
Journal: American Journal of Agricultural Economics
Year: 2025
Volume: 107
Issue: 2
Pages: 655-669

Authors (3)

Solomon Balew (not in RePEc) Erwin Bulte (Wageningen Universiteit en Res...) Menale Kassie (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study how temporary provision of an agricultural innovation at zero cost affects long‐run demand for that innovation. Our experimental design enables us to distinguish between an “anchoring effect” of subsidies and a “learning effect.” We document large and persistent anchoring and learning effects. For the innovation that we consider, an integrated pest management (IPM) package for Ethiopian smallholder farmers, the learning effect dominates the anchoring effect, so temporary subsidized provision promotes long‐run technology diffusion.

Technical Details

RePEc Handle
repec:wly:ajagec:v:107:y:2025:i:2:p:655-669
Journal Field
Agricultural
Author Count
3
Added to Database
2026-01-25