Analysing smallholders' behaviour on Sumatra : an ex ante policy analysis and investigation of experiments' external validity under consideration of risk

I: Palm oil production creates negative externalities, e.g., through intensive fertiliser application. Policies to limit externalities need an effective, sustainable and efficient measure We use a business simulation game in a framed field experiment in Indonesia to test ex ante different incentives for reducing such negative externalities. This setting allows inclusion of adequate contextual features, required for reasonable ex ante evaluation of policy measures. The different designs of the test incentives (either a reward or punishment) varied in their magnitude and probability of occurr...