A note on European farmers' preferences under cumulative prospect theory

Sammanfattning

Explaining farmer decision making using cumulative prospect theory is of increasing importance. We present a systematic review on European farmers' preferences under the cumulative prospect theory framework. We identified 17 studies covering 2324 farmers from 12 European countries. All studies report that (on average) farmers are: (i) risk averse, (ii) loss averse, and (iii) overweight small probabilities and underweight large probabilities. However, there is a large heterogeneity across and within studies. These findings have implications for the analysis and design of policy and insurance.

Nyckelord

farmer; preferences; prospect theory; risk and uncertainty; risk management

Publicerad i

Journal of Agricultural Economics
2024, volym: 75, nummer: 1, sidor: 465-472
Utgivare: WILEY

SLU författare

• Rommel, Jens

  • Institutionen för ekonomi, Sveriges lantbruksuniversitet
    

Associerade SLU-program

SLUsystematic

Globala målen (SDG)

SDG2 Ingen hunger
SDG15 Ekosystem och biologisk mångfald

UKÄ forskningsämne

Nationalekonomi
Företagsekonomi

Publikationens identifierare

• DOI: https://doi.org/10.1111/1477-9552.12565

Permanent länk till denna sida (URI)

https://res.slu.se/id/publ/126658