Agricultural and Biological Sciences
8 years ago

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

RePEc: Research Papers in Economics
Expected utility or prospect theory maximisers? Assessing farmers' risk behaviour from field-experiment data
Géraldine Bocquého, Florence Jacquet, Arnaud Reynaud

Paper Summary

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The study looked at how French farmers make decisions about risks. They found that farmers are cautious when it comes to gaining money, but are even more cautious when it comes to losing money. Farmers also tend to focus too much on unlikely extreme outcomes. This information can help create better policies, contracts, and insurance plans for farmers.