RT Journal Article
SR 00
ID 10.1093/erae/jbx011
A1 Bougherara, Douadia
A1 Gassmann, Xavier
A1 Piet, Laurent
A1 Reynaud, Arnaud
T1 Structural estimation of farmers’ risk and ambiguity preferences: a field experiment
JF European Review of Agricultural Economics
YR 2017
FD 2017-07
VO 44
IS 2
SP 1
OP 27
AB The distinction between risk, where agents assign well-defined probabilities to possible outcomes, and ambiguity, where agents do not, has long been of particular interest. Using a carefully designed field experiment, we elicit information about risk and ambiguity preferences among 197 French farmers and structurally estimate these preferences. We use cumulative prospect theory and a multiple-prior model in order to model risk and ambiguity preferences, respectively. We find that farmers are risk, ambiguity and loss averse, and that probability distortion differs in gains vs. losses, as well as in risk vs. ambiguity. These findings can have important implications for policy design.
PB Oxford University Press
SN 0165-1587
LK https://publications.ut-capitole.fr/id/eprint/25728/
UL http://tse-fr.eu/pub/32160