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.
Uzma Afzal, Giovanna d’Adda, Marcel Fafchamps, Farah Said, 25 October 2018
Most Read
Vox eBooks
Vox Talks
Events
-
17 - 18 October 2019 / Florence, Italy / Florence School of Banking and Finance, European University Institute
-
21 - 21 October 2019 / Frankfurt am Main / The Bank of England, the Board of Governors of the Federal Reserve System and the European Central Bank
-
28 - 30 October 2019 / Florence, Italy / Florence School of Banking and Finance, European University Institute
-
4 - 6 November 2019 / Florence, Italy / Florence School of Banking and Finance, European University Institute
-
6 - 6 November 2019 / Brussels, Belgium / European Capital Markets Institute
