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In Kind and Cash Payments in Experiments: Farmer Valuation of Seeds with Decreased Variance in Orissa, India Open Access


Other title
willingness to pay
experimental economics
Type of item
Degree grantor
University of Alberta
Author or creator
Hossack, Fiona I.
Supervisor and department
An, Henry (Resource Economics and Environmental Sociology)
Examining committee member and department
Swallow, Brent (Resource Economics and Environmental Sociology)
Boxall, Peter (Resource Economics and Environmental Sociology)
Dyck, Miles (Renewable Resources)
An, Henry (Resource Economics and Environmental Sociology)
Department of Resource Economics and Environmental Sociology
Agricultural and Resource Economics
Date accepted
Graduation date
Master of Science
Degree level
Evaluating the ex-ante willingness to pay (WTP) and adoption rates for pro-poor technologies is necessary to inform development interventions, the distribution and pricing of new technologies, and research and development. Unfortunately, a common practice of economic experiments that elicit value, paying participants in cash, is not always amenable to partner organizations in developing countries. Using a framed field experiment, an alternative in kind payment is explored and its effect on the valuation of yield stabilizing seed traits compared to that of cash. I find participants who are paid in kind with commonly bought household goods are willing to pay about 7% more than when they are paid in cash, suggesting that in kind remuneration may result in the overestimation of WTP. In addition, for a 6.9 INR reduction in the standard deviation, WTP was approximately 8% higher, suggesting that farmers value yield stabilizing seed traits like pest or drought resistance.
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