Farmers' risk preferences in 11 European farming systems: A multi-country replication of Bocquého et al. (2014)

Jens Rommel*, Julian Sagebiel, Marieke Cornelia Baaken, Jesús Barreiro-Hurlé, Douadia Bougherara, Luigi Cembalo, Marija Cerjak, Tajana Čop, Mikołaj Czajkowski, María Espinosa-Goded, Julia Höhler, Laure Kuhfuss, Carl Johan Lagerkvist, Margaux Lapierre, Marianne Lefebvre, Bettina Matzdorf, Edward Ott, Antonio Paparella, Erika Quendler, Macario Rodriguez-EntrenaChristoph Schulze, Tanja Šumrada, Annika Tensi, Sophie Thoyer, Marina Tomić Maksan, Riccardo Vecchio, Marc Willinger, Katarzyna Zagórska

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

12 Citations (Scopus)

Abstract

We replicate Bocquého et al. (2014), who used multiple price lists to investigate the risk preferences of 107 French farmers. We collected new data from 1430 participants in 11 European farming systems. In agreement with the original study, farmers' risk preferences are best described by Cumulative Prospect Theory. Structural model estimates show that farmers in the new samples are, on average, less loss averse and more susceptible to probability distortion than in the original study. Explorative analyses indicate differences between estimation approaches, as well as heterogeneity between and within samples. We discuss challenges in replications of economic experiments with farmers across farming contexts.

Original languageEnglish
Pages (from-to)1374-1399
Number of pages26
JournalApplied Economic Perspectives and Policy
Volume45
Issue number3
Early online date25 Oct 2022
DOIs
Publication statusPublished - Sept 2023

Keywords

  • agriculture
  • artefactual field experiment
  • cumulative prospect theory
  • expected utility theory
  • risk attitudes

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