Hyperbolic discounting and fetilizer use

Hyperbolic Discounting and Financial Products

Intervention Description

Kenyan farm workers are surprisingly unlikely to buy fertilizer, despite the fact that fertilizer represents a small fixed cost and would benefit the farmers in many ways. Working under the assumption that the farmers are restrained in a present bias, researchers visited Kenyan farmers to distribute time-limited vouchers for fertilizer that would be delivered for free. Results showed that use of fertilizer did increase after this intervention.