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- Title
The Effects of Transactions Costs and Social Distance: Evidence from a Field Experiment.
- Authors
Meer, Jonathan; Rigbi, Oren
- Abstract
We use data from a field experiment at Kiva, the online microfinance platform, to examine the role of transactions costs and social distance in decision-making. Requests for loans are either written in English or another language, and our treatment consists of posting requests in the latter category with or without translation. We find evidence that relatively small transactions costs have a large effect on the share of funding coming from speakers of languages other than that in which the request was written. Social distance plays a smaller role in funding decisions.
- Subjects
SOCIAL distance; TRANSACTION costs; EXTERNALITIES; ENGLISH language writing
- Publication
B.E. Journal of Economic Analysis & Policy, 2013, Vol 13, Issue 1, p271
- ISSN
2194-6108
- Publication type
Article
- DOI
10.1515/bejeap-2012-0064