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Private lives: experimental evidence on information completeness in spousal preferences

Published online by Cambridge University Press:  17 January 2025

Anirudh Tagat Open the ORCID record for Anirudh Tagat [Opens in a new window] ,
Hansika Kapoor  and
Savita Kulkarni
Anirudh Tagat*
Affiliation:
Department of Economics, Monk Prayogshala, 4114, Oberoi Garden Estates C Wing, Andheri (East), Mumbai, Maharashtra 400072, India
Hansika Kapoor
Affiliation:
Department of Psychology, Monk Prayogshala, Mumbai, Maharashtra, India
Savita Kulkarni
Affiliation:
Gokhale Institute of Politics and Economics, Pune, India
*
e-mail: [email protected]
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Abstract

Experimental work using real married couples has shown that efficiency in intra-household allocations is influenced by information asymmetry between spouses. We conduct a lab-in-the-field experiment in rural India to test the extent to which lack of complete information on spousal preferences related to a bundle of private goods can affect allocation dynamics as well as expectations about allocations. We first show that there exist information asymmetries in spousal preferences, and that our information intervention helps reduce gendered misperception in beliefs about allocations and actual allocations, especially for men. However, information on spousal preferences does not significantly affect the final allocation decision, suggesting that husbands and wives may be responding to existing gender norms. We outline implications for experimental work on intra-household bargaining, and for policy.

Keywords

Information asymmetryBeliefsIntra-household bargainingIndia

JEL classification

D13: Household Production and Intrahousehold Allocation C93: Field Experiments D82: Asymmetric and Private Information • Mechanism Design
Type
Original Paper
Information
Journal of the Economic Science Association , Volume 10 , Issue 1 , June 2024 , pp. 62 - 75
Copyright
Copyright © The Author(s), under exclusive licence to Economic Science Association 2023.

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