Seaweed farming may seem obscure, but this could become one of the most potent new ideas in behavioral economics:
Existing learning models attribute failures to learn to a lack of data. We model a different barrier. Given the large number of dimensions one could focus on when using a technology, people may fail to learn because they failed to notice important features of the data they possess.
We conduct a field experiment with seaweed farmers to test a model of “learning through noticing”. We find evidence of a failure to notice: On some dimensions, farmers do not even know the value of their own input. Interestingly, trials show that these dimensions are the ones that farmers fail to optimize. Furthermore, consistent with the model, we find that simply having access to the experimental data does not induce learning. Instead, farmers change behavior only when presented with summaries that highlight the overlooked dimensions.
A recent paper by Hanna, Mullainathan and Schwartzstein.
8 Responses
Jonathan Robinson’s new paper on small shopkeepers not noticing the large impact of not having enough change on hand is very relevant. http://people.ucsc.edu/~jmrtwo/change.pdf
Noticing http://t.co/oVMyeRdR seaweed farmers and learning. #informationfunnel
Noticing http://t.co/Ze7mmEos
For @aidinfo: simply having access to the experimental data does not induce learning http://t.co/Gybf0GfM
The power of “but this is how I learned to farm seaweed (or w/e), and how my friends do it” @cblatts: Noticing http://t.co/3aQV1SaV
RT @cblatts: Noticing http://t.co/Jl3jthR2
Here is a link to a recent behavioral theory paper that seems to be close in spirit:
http://isites.harvard.edu/fs/docs/icb.topic1129905.files/Perceptions.pdf
They develop a model in which people simply don’t use some available information, although they are still right on average. Interestingly, this does not always make them worse off: a little bit of information can be dangerous.
Noticing http://t.co/uYu4YucP