EconPapers    
Economics at your fingertips  
 

Loyalty, exit, and enforcement: evidence from a Kenya Dairy Cooperative

Lorenzo Casaburi and Rocco Macchiavello ()

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Organizations depend on members' "loyalty" for their success. Studying a cooperative's attempt to increase deliveries by members, we show that the threat of sanctions leads to highly heterogeneous response among members. Despite the cooperative not actually enforcing the threatened sanctions, positive effects for some members persist for several months. Other members "exit," stopping delivering altogether. Among non-compliant members we document substantial heterogeneity in beliefs about the legitimacy of the sanctions. This lack of common understanding highlights the role played by managers in organizations and provides a candidate explanation for lack of sanctions enforcement documented by Ostrom (1990) and other studies.

JEL-codes: D83 O13 P13 Q13 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-agr and nep-soc
References: View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Published in American Economic Review, 2015, 105(5), pp. 286-290. ISSN: 0002-8282

Downloads: (external link)
http://eprints.lse.ac.uk/68218/ Open access version. (application/pdf)

Related works:
Journal Article: Loyalty, Exit, and Enforcement: Evidence from a Kenya Dairy Cooperative (2015) 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:ehl:lserod:68218

Access Statistics for this paper

More papers in LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library LSE Library Portugal Street London, WC2A 2HD, U.K.. Contact information at EDIRC.
Bibliographic data for series maintained by LSERO Manager ().

 
Page updated 2020-09-05
Handle: RePEc:ehl:lserod:68218