The social dilemma of microinsurance A framed field experiment on free-riding and coordination in microcredit groups
نویسنده
چکیده
This paper analyzes whether individuals who share risk have suboptimal demand for microinsurance due to a social dilemma. Even when individuals prefer to enroll as a group, they are tempted to free-ride on contributions from their peers and may fail to coordinate on their social optimum when insurance is offered at the individual level. A framed laboratory experiment in Tanzania, eliciting demand for group versus individual insurance among microcredit clients, demonstrates substantial free-riding but only limited coordination failures. These findings extend the literature on strategic decisions in the presence of a public good and provide a potential explanation for the low take-up of microinsurance.
منابع مشابه
The Social Dilemma of Microinsurance: A Framed Field Experiment on Free-Riding and Coordination
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