EconPapers    
Economics at your fingertips  
 

Demand and Supply of Infrequent Payments as a Commitment Device: Evidence from Kenya

Lorenzo Casaburi and Rocco Macchiavello ()

American Economic Review, 2019, vol. 109, issue 2, 523-55

Abstract: 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.

JEL-codes: K12 L66 O13 O17 Q12 Q13 (search for similar items in EconPapers)
Date: 2019
Note: DOI: 10.1257/aer.20180281
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed

Downloads: (external link)
https://www.aeaweb.org/doi/10.1257/aer.20180281 (application/pdf)
https://www.aeaweb.org/articles/attachments?retrie ... Pm39dpVphunOMgrRSkf8 (application/zip)
https://www.aeaweb.org/articles/attachments?retrie ... sBOuU_BZnmlyFjECeUkk (application/pdf)
https://www.aeaweb.org/articles/attachments?retrie ... j6akGcQuFPjiNwW3MobT (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
Working Paper: Demand and supply of infrequent payments as a commitment device: evidence from Kenya (2019) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:109:y:2019:i:2:p:523-55

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Review is currently edited by Esther Duflo

More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().

 
Page updated 2020-09-05
Handle: RePEc:aea:aecrev:v:109:y:2019:i:2:p:523-55