Working Paper No. 1363

The Value of Information in Technology Adoption

Published: October 12, 2020Pages: 54Keywords: Technology adoption; Peers; Risk attitude; RCT; BangladeshJEL-codes: O13; Z13

The Value of Information in Technology Adoption Asad Islam, Philip Ushchev, Yves Zenou and Xin Zhang


We develop a theoretical model in which technology adoption decisions are based on the information received from others about the quality of a new technology and on their risk attitudes. We test the predictions of this model using a randomized field experiment in Bangladesh. We show that the share of treated farmers who receive better training in System of Rice Intensification (SRI) technology have a high positive impact on the adoption rate of untreated farmers. We also find that untreated farmers who are more risk-averse tend to adopt the technology less and are less influenced by their treated peers. Our results thus indicate that spillover effects are important in technology adoption and that information transmission about the quality of the technology matters.


Reference:

Islam, Asad, Philip Ushchev, Yves Zenou and Xin Zhang (2020), "The Value of Information in Technology Adoption". IFN Working Paper No. 1363. Stockholm: Research Institute of Industrial Economics (IFN).

Interdisciplinary European Studies

The European Union and the Return of the Nation State

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This book explores the complex and ever-changing relationship between the European Union and its member states. The recent surge in tension in this relationship has been prompted by the actions of some member state governments as they question fundamental EU values and principles and refuse to implement common decisions seemingly on the basis of narrowly defined national interests.

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