Journal ArticleDOI
Empirical Challenges for Risk Preferences and Production
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The importance of risk preferences in agricultural production has long been identified as an important and preeminent issue of policy relevance as discussed by the authors, and recent developments in the study of production risk have called into question much of the core of risk production research.Abstract:
The importance of risk preferences in agricultural production has long been identified as an important and preeminent issue of policy relevance. Recent developments in the study of production risk have called into question much of the core of risk production research. This article provides an overview of the prominent literature attempting to quantify the impact of risk preferences on production and a discussion of the recently discovered challenges. These challenges are typified by (a) an inability to discern risk preferences, (b) an inability to discern the factors that relate to risk preferences, (c) evidence that prior estimation has severe problems, and (d) a general failure of current models to address the important policy or behavioral issues. Although some of these challenges may appear at first blush to be insurmountable, we suggest a new agenda for risk research in production that directly addresses each of these issues.read more
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Farmer Behaviour as Reasoned Action: A Critical Review of Research with the Theory of Planned Behaviour
TL;DR: In this article, the authors provide a brief overview of the theory of planned behaviour and an elaboration of good practices in the assessment of its constructs, and provide recommendations for research design and data analysis.
Journal ArticleDOI
Measuring the effect of risk attitude on marketing behavior
Jason R.V. Franken,Joost M.E. Pennings,Joost M.E. Pennings,Joost M.E. Pennings,Philip Garcia +4 more
TL;DR: The authors found that survey-based measures are generally more significant indicators of marketing choices, but experimental measures reveal how risk attitudes vary over a range of probable outcomes, which is important in light of increased commodity price volatility.
Journal ArticleDOI
Adoption of farm-based irrigation water-saving techniques in the Guanzhong Plain, China
TL;DR: In this article, the adoption of farm-based irrigation water saving techniques is analyzed based on a cross-sectional data set of 357 farmers in the Guanzhong Plain, China.
Posted ContentDOI
On the role of probability weighting on WTP for crop insurance with and without yield skewness
Douadia Bougherara,Laurent Piet +1 more
TL;DR: In this article, the authors study the sensitivity of farmer WTP for crop insurance to the inclusion of cumulative prospect theory (CPT) parameters and find that loss aversion and probability distortion increase farmer's willingness to pay for insurance while risk aversion decreases it.
Posted Content
Risk preferences and voluntary agrienvironmental schemes: does risk aversion explain the uptake of the Rural Environment Protection Scheme?
TL;DR: In this article, the authors estimate risk preferences with the model of Antle (Antle, 1987) in order to analyse the impact of risk aversion (relative risk premium) on the probability of joining REPS.
References
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Posted Content
Risk Aversion and Expected Utility Theory: A Calibration Theorem
TL;DR: Within the expected-utility framework, the only explanation for risk aversion is that the utility function for wealth is concave: a person has lower marginal utility for additional wealth when she is wealthy than when he is poor as discussed by the authors.
Posted Content
Entrepreneurs' Perceived Chances for Success
TL;DR: In this article, the authors explored the expectations of entrepreneurs in newly established businesses regarding their own chances of success and theirpredictions regarding the chances for success of others with similar startup ideas, in one of the first such studies.
Book Chapter
Individual Decision Making
TL;DR: In this article, the authors review recent experimental studies of individual decision making with their implications for economics in mind and conclude that decision making is increasingly important for economics for at least two reasons.
Journal ArticleDOI
Entrepreneurs' perceived chances for success
TL;DR: In this paper, the authors analyzed data from 2994 entrepreneurs who had recently become business owners to determine their perceived changes of success and found that they perceived their prospects as very favorable, with 81% seeing odds of 7 out of 10 or better.
Journal ArticleDOI
Risk Aversion and Expected-Utility Theory: A Calibration Theorem
TL;DR: Within the expected-utility framework, the only explanation for risk aversion is that the utility function for wealth is concave: a person has lower marginal utility for additional wealth when she is wealthy than when he is poor as mentioned in this paper.