Demand and supply of infrequent payments as a commitment device: evidence from Kenya
Domaine:
socioeconomicagricultureType de record:
paper
Créateur:
CasMac
Éditeur:
UniUni
Éditeur:
Ame
Hôte:
Despite extensive evidence that preferences are often time-inconsistent, there is only scarce evidence of willingness to pay for commitment. Infrequent payments for frequently provided goods and services are a common feature of many markets and they may naturally provide commitment to save for lumpy expenses. Multiple experiments in the Kenyan dairy sector show that: (i) farmers are willing to incur sizable costs to receive infrequent payments as a commitment device, (ii) poor contract enforcement, however, limits competition among buyers in the supply of infrequent payments. We then present a model of demand and supply of infrequent payments and test its additional predictions.
Similaires
Supply and demand macro-econometric model of a small economy: evidence from NamibiaEffects of Index Insurance on Demand and Supply of Credit: Evidence from EthiopiaThe role of agregate demand and supply shocks in a low-income country : evidence from BangladeshAppointments: a more effective commitment device for health behavioursTax Implications of Cashless Payments: Evidence from AfricaSupply Chain Integration as a Driver of Sustainable Competitive Advantage: Evidence from Ethiopian Manufacturing Industry