The DOI matches its Crossref record; 1 of the 1 references it cites were found in a registry or an index.
Monitoring in Small Firms: Experimental Evidence from Kenyan Public Transit
Abstract
Small firms struggle to grow beyond a few employees. We introduce monitoring devices into commuter minibuses in Kenya and randomize which minibus owners have access to the data using a novel mobile app. We find that treated vehicle owners modify the terms of the contract to induce higher effort and lower risk taking from their drivers. This reduces firm costs and increases firm profitability. There is suggestive evidence that some firms expand. These results suggest that small firms may be able to utilize monitoring technologies to overcome problems of moral hazard and enhance their profitability. (JEL D22, D24, D82, J41, L25, L92, O14)
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Metadata
- Authors
- Kelley, E. M., Lane, G., & Schönholzer, D.
- Affiliations
- University of Chicago (US)
- University of California, Santa Cruz (US)
- ORCID
- Kelley, Erin M.
- Venue
- American Economic Review
- Publisher
- American Economic Association
- Published
- 2024-10-01
- Volume
- 114
- Issue
- 10
- Pages
- 3119-3160
- ISSN
- 0002-8282 (ISSN-L)
- 1944-7981
- OpenAlex
- W4402924206
- Cited by
- 16
- References
- 1
- Citations by year
- 2026: 4 · 2025: 5 · 2024: 3
- FWCI
- 4.97
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- American Economic Review (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Experimental Behavioral Economics Studies
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Law, Economics, and Judicial Systems
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Merger and Competition Analysis
- Keywords
- small business, monitoring technology, moral hazard, public transport, risk-taking, firm profitability, business growth, contract terms, mobile application, Kenya
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