Are non-fungible payments attractive when they reduce risk exposure? Evidence from Colombia
Alexander Cano,
Darwin Cortés,
César Mantilla
et al.
Abstract:We conducted a lab-in-the-field experiment in which 214 Colombian rural workers must choose between cash or voucher payment for completing a real effort task. Although the voucher may be perceived as non-fungible, it halves the probability of suffering a negative shock that will reduce the participant’s payment by two-thirds. Participants made four decisions in which we vary the voucher values such that this payment method offers, in expectation, between 88% to 123% of the cash payment (fixed across decisions)… Show more
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