Risk and Ambiguity Preferences and the Adoption of New Agricultural Technologies: Evidence from Field Experiments in Rural India
AbstractIn this paper we conduct a series of eld experiments in rural India in order to measure preferences related to risk, loss, and ambiguity. Disaggregating by data, we nd that on average women are signi cantly more risk averse and loss averse than men, though the higher average risk aversion arises due to a greater share of women who are extremely risk averse. Through a series of two empirical examples, we demonstrate how these parameters a ect decisions to adopt new agricultural technologies. By combining these results with a choice experiment over new and familiar rice seeds, we nd that ambiguity averse individuals are far more likely to stick with seeds they are familiar with, while a greater degree of loss aversion generally suggests people are more willing to switch to a new variety.
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Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. with number 150794.
Date of creation: 03 Jun 2013
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uncertainty; Prospect Theory; technology adoption; India; Community/Rural/Urban Development; Consumer/Household Economics; International Development; International Relations/Trade; Research Methods/ Statistical Methods; O13; O33; C93;
Find related papers by JEL classification:
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
This paper has been announced in the following NEP Reports:
- NEP-AGR-2013-07-05 (Agricultural Economics)
- NEP-ALL-2013-07-05 (All new papers)
- NEP-CBE-2013-07-05 (Cognitive & Behavioural Economics)
- NEP-DEV-2013-07-05 (Development)
- NEP-EXP-2013-07-05 (Experimental Economics)
- NEP-UPT-2013-07-05 (Utility Models & Prospect Theory)
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