TY  - JOUR
ID  - publications22264
UR  - http://tse-fr.eu/pub/30611
IS  - n°1
A1  - Bocquého, Géraldine
A1  - Jacquet, Florence
A1  - Reynaud, Arnaud
N2  - We elicit the risk preferences of a sample of French farmers in a field-experiment setting, considering both expected utility and cumulative prospect theory. Under the EU framework, our results show that farmers are characterised by a concave utility function for gain outcomes implying risk aversion. The CPT framework confirms this result, but also suggests that farmers are twice as sensitive to losses as to gains and tend to pay undue attention to unlikely extreme outcomes. Accounting for loss aversion and probability weighting can make a difference in the design of effective and efficient policies, contracts or insurance schemes.
VL  - 41
TI  - Expected utility or prospect theory maximisers? Assessing farmers' risk behaviour from field-experiment data
AV  - none
EP  - 172
Y1  - 2014///
PB  - Oxford University Press
JF  - European Review of Agricultural Economics
KW  - Risk preferences
KW  - Experimental economics
KW  - Loss aversion
KW  - Probability weighting
KW  - France
SN  - 0165-1587
SP  - 135
ER  -