Uzma Afzal, Giovanna d’Adda, Marcel Fafchamps, Farah Said, 25 October 2018

Within households, an individual often makes consumption decisions for the collective. Leading intra-household decision making models predict efficiency based on perfect information about individuals’ preferences and benevolence. This column challenges these models by incorporating information asymmetry and demand for agency. Experimental evidence from Pakistan shows that household consumption decisions are shaped by a demand for agency, and that this is mediated by level of empowerment. 

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