Agricultural and Biological Sciences
8 years ago

French farmers twice as sensitive to losses, impacting policy design.

European Review of Agricultural Economics
Expected utility or prospect theory maximisers? Assessing farmers' risk behaviour from field-experiment data
Géraldine Bocquého, Florence Jacquet, Arnaud Reynaud

Paper Summary

Related papers

Economics, Econometrics and Finance
4 years ago

Cumulative Prospect Theory: A Game-Changer in Economic Decision-Making!

Monetary Models
2 views
Decision Sciences
4 years ago

New method reveals people's fear of loss, revolutionizing decision-making.

Behavioral Economics
Discrete Choice
Robust Optimization
3 views
Decision Sciences
4 years ago

New theories challenge traditional views on risk and decision-making.

Robust Optimization
3 views

French farmers were studied to understand how they make decisions about risk. The farmers were found to be cautious when it comes to gaining money, but even more cautious when it comes to losing money. They also tend to focus too much on unlikely extreme outcomes. This information can help create better policies, contracts, and insurance plans for farmers.