The authors investigate whether available enforcement mechanisms affect who shares risk with whom in sub-Saharan Africa by applying dyadic regression analysis to data from a lab-type experiment, surveys and a genealogical mapping exercise. During the experiment participants were invited to form risk sharing groups under three enforcement mechanisms: external, intrinsic, and extrinsic, i.e., social sanctioning. Same sex dyads and dyads who belong to the same economic community-based organizations (CBOs) are more likely to share risk. However, when social sanctioning is possible, co-members in economic CBOs withdraw from group formation and co-religion and marriage ties come to the fore.
Barr, A.; Dekker, M.; Fafchamps, M. Who Shares Risk with Whom under Different Enforcement Mechanisms? Economic Development and Cultural Change (2012) 60 (4) 677-706. [DOI: 10.1086/665599]