Record Details

Using Experimental Economics to Measure Social Capital and Predict Financial Decisions

Harvard Dataverse (Africa Rice Center, Bioversity International, CCAFS, CIAT, IFPRI, IRRI and WorldFish)

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Title Using Experimental Economics to Measure Social Capital and Predict Financial Decisions
 
Identifier https://doi.org/10.7910/DVN/27849
 
Creator Karlan, Dean
 
Publisher Harvard Dataverse
 
Description The Trust game is a laboratory-based study conducted as follows: First, before assigning the roles, all rules were explained to the participants. All participants received three nuevos soles, were paired randomly, and assigned either an A or a B. As pairings were announced, they could observe the identity of their partner but were separated immediately and hence had no opportunity to communicate. The A's then had the opportunity to pass to the B's zero, one, two, or three of their coins. If A passed zero coins, the game ended. If A passed more than zero coins, the game administrator matched the amount passed. Then, B could pass back any number of coins to A and the game ended. Given the finite end, and assuming no post-game consequences, the sub-game perfect equilibrium was for B to pass back nothing to A and hence for A to pass nothing to B. Public goods game: Each participant was given one coin. Privately, each individual then either gave the administrator back the coin or did not. If the administrator received 80 percent or more of the coins back, then everyone was given two coins
. Outcomes collected: Number of coins given and returned in trust game, participation in public goods game. default rate on loans, drop-out due to default or discipline, and total voluntary savings.
 
Subject Social Sciences
Microfinance
Social capital
 
Type Survey and administrative data