The Review of Economic Studies
Vol. 91, Issue 4, Pages 1884-1922
Date of Publication:
July 2024
In disseminating information, policymakers face a choice between broadcasting to everyone and informing a small number of “seeds” who then spread the message. While broadcasting maximises the initial reach of messages, we offer theoretical and experimental evidence that it need not be the best strategy. In a field experiment during the 2016 Indian demonetisation, we delivered policy information, varying three dimensions of the delivery method at the village level: initial reach (broadcasting versus seeding); whether or not we induced common knowledge of who was initially informed; and number of facts delivered. We measured three outcomes: the volume of conversations about demonetisation, knowledge of demonetisation rules, and choice quality in a strongly incentivised policy-dependent decision. On all three outcomes, under common knowledge, seeding dominates broadcasting; moreover, adding common knowledge makes seeding more effective but broadcasting less so. We interpret our results via a model of image concerns deterring engagement in social learning, and we support this interpretation with evidence on differential behaviour across ability categories.
Citations
Banerjee, Abhijit, Emily Breza, Arun G Chandrasekhar and Benjamin Golub. 2024. When Less is More: Experimental Evidence on Information Delivery During India’s Demonetization. Review of Economic Studies 91(4):1884–1922.