Intervention

Commitment devices and farmer saving habits

Farmers in Malawi were offered different types of saving accounts. One type of account was ordinary, and the other (commitment account) restricted their ability to access their money. Those who used a commitment account bought more agricultural tools than those offered an ordinary account. This effect was due to more than simple restriction, as very few farmers who were offered actually used the account. The difference may be a result of social pressure and other psychological factors.

Biases Used

Bias

Other Applications: Social pressure, framing