Rommel, Jens
- Department of Economics, Swedish University of Agricultural Sciences
Research article2024Peer reviewedOpen access
Finger, Robert; Garcia, Viviana; Mccallum, Chloe; Rommel, Jens
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.
farmer; preferences; prospect theory; risk and uncertainty; risk management
Journal of Agricultural Economics
2024, Volume: 75, number: 1, pages: 465-472 Publisher: WILEY
SLUsystematic
SDG2 Zero hunger
SDG15 Life on land
Economics
Business Administration
DOI: https://doi.org/10.1111/1477-9552.12565
https://res.slu.se/id/publ/126658