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Attitudes toward uncertainty among the poor: an experiment in rural Ethiopia

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Author Info

  • Alpaslan Akay

    ()

  • Peter Martinsson

    ()

  • Haileselassie Medhin

    ()

  • Stefan Trautmann

    ()

Abstract

We investigate risk and ambiguity attitudes among Ethiopian farmers in one of the poorest regions of the world. Strong risk aversion and ambiguity aversion were found with the Ethiopian farmers. We compared their attitudes to those of a Western university student sample elicited by the same decision task. Ambiguity aversion was similar for farmers and students, but farmers were more risk averse. Our results show that ambiguity aversion is not restricted to Western student populations, and that studies of agricultural decisions may benefit from explicitly considering ambiguity attitudes. Copyright The Author(s) 2012

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Bibliographic Info

Article provided by Springer in its journal Theory and Decision.

Volume (Year): 73 (2012)
Issue (Month): 3 (September)
Pages: 453-464

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Handle: RePEc:kap:theord:v:73:y:2012:i:3:p:453-464

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Web page: http://www.springerlink.com/link.asp?id=100341

Related research

Keywords: Risk attitudes; Ambiguity attitudes; Poverty; Agriculture; D81; C93; O12;

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References

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Citations

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Cited by:
  1. Vieider, Ferdinand M. & Chmura, Thorsten & Martinsson, Peter, 2012. "Risk attitudes, development, and growth: Macroeconomic evidence from experiments in 30 countries," Discussion Papers, WZB Junior Research Group Risk and Development SP II 2012-401, Social Science Research Center Berlin (WZB).
  2. Morawetz, Ulrich B. & De Groote, Hugo & Kimenju, Simon Chege, 2011. "Improving the Use of Experimental Auctions in Africa: Theory and Evidence," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(2), August.
  3. Vieider, Ferdinand M. & Truong, Nghi & Martinsson, Peter & Pham Khanh Nam & Martinsson, Peter, 2013. "Risk preferences and development revisited: A field experiment in Vietnam," Discussion Papers, WZB Junior Research Group Risk and Development SP II 2013-403, Social Science Research Center Berlin (WZB).
  4. Barham, Bradford L. & Chavas, Jean-Paul & Fitz, Dylan & Salas, Vanessa Ríos & Schechter, Laura, 2014. "The roles of risk and ambiguity in technology adoption," Journal of Economic Behavior & Organization, Elsevier, vol. 97(C), pages 204-218.
  5. Oechssler, Jörg & Roomets, Alex, 2014. "A Test of Mechanical Ambiguity," Working Papers 0555, University of Heidelberg, Department of Economics.

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