Behavioral Economics Commons^™

Three Essays In Experimental And Network Economics, John D. Mcmahan

Doctoral Dissertations

This dissertation consists of the three essays in network and experimental economics. The first essay explores the importance of endogenous bilateral connections and punishment networks in public good settings. I conduct a laboratory experiment that varies the incentive to form links among participants in a traditional Voluntary Contribution Mechanism game. I find that when link benefits are zero very few connections are formed, and very little punishment takes place. When link benefits are positive many links are formed and cooperation levels are increased. In general, we find evidence that participants strategically use the bilateral linking process to avoid punishment and …

Why Risk It? The Effect Of Risk And Time Preferences On Microfinance Loan Default, Nike Start

Nike Start

Microfinance is widely recognized as a powerful method for poverty alleviation. However, little is known about the characteristics of those who default on their loans. Understanding the behavior of borrowers is an important component of mitigating adverse selection and the moral hazard of lending. Both of these concepts embody some of the greatest challenges faced by microfinance institutions, and they provide the major motivation for this study. Accordingly, the main objective of this research is to investigate whether non-delinquent borrowers and delinquent borrowers of a microfinance institution reveal any difference in their level of risk preference and time preference. This …

Why Risk It? The Effect Of Risk And Time Preferences On Microfinance Loan Default, Nike Start

Master's Theses

Microfinance is widely recognized as a powerful method for poverty

alleviation. However, little is known about the characteristics of those who

default on their loans. Understanding the behavior of borrowers is an important

component of mitigating adverse selection and the moral hazard of lending. Both

of these concepts embody some of the greatest challenges faced by microfinance

institutions, and they provide the major motivation for this study. Accordingly,

the main objective of this research is to investigate whether non-delinquent

borrowers and delinquent borrowers of a microfinance institution reveal any

difference in their level of risk preference and time preference. This …