Social and financial incentives for overcoming a collective action problem

A-Tier
Journal: Journal of Development Economics
Year: 2023
Volume: 162
Issue: C

Authors (4)

Bakhtiar, M. Mehrab (not in RePEc) Guiteras, Raymond P. (North Carolina State Universit...) Levinsohn, James (not in RePEc) Mobarak, Ahmed Mushfiq (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

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

Abstract

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.

Technical Details

RePEc Handle
repec:eee:deveco:v:162:y:2023:i:c:s0304387823000275
Journal Field
Development
Author Count
4
Added to Database
2026-01-25