Replication data for: Loyalty, Exit, and Enforcement: Evidence from a Kenya Dairy Cooperative

Principal Investigator(s): View help for Principal Investigator(s) Lorenzo Casaburi; Rocco Macchiavello

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Project Citation:

Casaburi, Lorenzo, and Macchiavello, Rocco. Replication data for: Loyalty, Exit, and Enforcement: Evidence from a Kenya Dairy Cooperative. Nashville, TN: American Economic Association [publisher], 2015. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113400V1

Project Description

Summary: Organizations depend on members' "loyalty" for their success. Studying a cooperative's attempt to increase deliveries by members, we show that the threat of sanctions leads to highly heterogeneous response among members. Despite the cooperative not actually enforcing the threatened sanctions, positive effects for some members persist for several months. Other members "exit," stopping delivering altogether. Among non-compliant members we document substantial heterogeneity in beliefs about the legitimacy of the sanctions. This lack of common understanding highlights the role played by managers in organizations and provides a candidate explanation for lack of sanctions enforcement documented by Ostrom (1990) and other studies.

Scope of Project

JEL Classification:
      D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
      O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
      P13 Cooperative Enterprises
      Q13 Agricultural Markets and Marketing; Cooperatives; Agribusiness

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Published Versions

V1 [2019-10-12]

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DDI 2.5

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