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Using experimental games to investigate social networks in rural Colombia
In this project we analyse the findings from a series of risk-sharing games that were conducted in the spring of 2006 in 70 municipalities in rural Colombia with predominantly poor participants. In this game, players were given a choice of six "lotteries" with those carrying higher risk also providing a higher expected return. The game consisted of two rounds; in the first round, individuals received the outcome of their own lottery, whilst in the second round, individuals were able to form "risk sharing groups" in which winnings would be shared. However, individuals could go on to renege on their group commitment without declaring this publicly. Our dataset contains full details of every individuals decisions and outcomes in both rounds of the game (and during practise). This project serves several purposes; firstly to investigate the determinants of risk-taking behaviour in these games; secondly, to investigate the determinants of group formation and the characteristics of those deciding to group together; and thirdly, to analyse the impact of Familias en Accion upon these behaviours. This project will consist of a set of academic papers together with a summary paper that will be more accessible to non-economists.

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