The peasants in the third world was for a long time assumed to be the opposite to the "economic man". The peasants, so the argument went, were irrational and their behaviour was determined by traditions, not by economic incentives. Some important contributions to economic theory have questioned this assumption. Now the issue is not whether peasants respond to economic incentives, but how.
This study is a survey of the theoretical and empirical examination of peasants response to price incentives in Tanzania.