The effects of transactions costs and social distance: Evidence from a field experiment

Jonathan Meer, Oren Rigbi

Research output: Contribution to journalReview articlepeer-review

17 Scopus citations

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.

Original languageEnglish
Pages (from-to)271-296
Number of pages26
JournalB.E. Journal of Economic Analysis and Policy
Volume13
Issue number1
DOIs
StatePublished - 1 Jan 2013

Keywords

  • Charitable giving
  • Cicrofinance
  • Social distance
  • Transactions costs
  • Translation

Fingerprint

Dive into the research topics of 'The effects of transactions costs and social distance: Evidence from a field experiment'. Together they form a unique fingerprint.

Cite this