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Consumer Inequality Aversion and Risk Preferences in Community Supported Agriculture

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  • Kévin Bernard

    (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - INSTITUT AGRO Agrocampus Ouest - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)

  • Aurélie Bonein

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • Douadia Bougherara

    (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)

Abstract

In community-supported agriculture (CSA), consumers face a tradeoff between (i.) the desire to support a CSA farmer and obtain environmentally-friendly goods and (ii.) the risk associated with a long-term commitment. We elicit inequality aversion and risk preferences of a sample of 162 French CSA consumers using incen-tivized field experiments. We find that CSA consumers are concerned about payoff inequalities. While we obtain evidence of advantageous inequality aversion toward CSA farmers, we also find disadvantageous inequality seeking. We find that CSA consumers are risk averse and loss averse and distort probabilities. We also observe that inequality and risk preferences in the loss domain might complement each other to strengthen consumers' support for CSA farmers.

Suggested Citation

  • Kévin Bernard & Aurélie Bonein & Douadia Bougherara, 2020. "Consumer Inequality Aversion and Risk Preferences in Community Supported Agriculture," Post-Print hal-02541728, HAL.
    • Handle: RePEc:hal:journl:hal-02541728
    DOI: 10.1016/j.ecolecon.2020.106684
    Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-02541728
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    2. Ousmane Z. Traoré & Lota D. Tamini & Bernard Korai, 2023. "Willingness to pay for credence attributes associated with agri‐food products—Evidence from Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 71(3-4), pages 303-327, September.
    3. Yahya Dabaghi & Shahla Choobchian & Hassan Sadighi & Hossein Azadi, 2022. "Consumers’ attitude toward participation in community-supported aquaculture: a case of Kurdistan province in the west of Iran," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 12(4), pages 870-889, December.
    4. Jasper Grashuis & Ye Su, 2022. "Inequality aversion and consumer ethnocentrism: Food consumer preferences for payoff distributions to farm producers," Agribusiness, John Wiley & Sons, Ltd., vol. 38(3), pages 608-619, July.
    5. Ruoyan Zhang & Ru Chen, 2023. "The regulatory effect of cooperation degree in increasing tobacco farmers’ income by mitigating production risk shocks," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(4), pages 1323-1344, December.

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    More about this item

    Keywords

    Inequality aversion preferences; Risk aversion; Field experiment; Community supported agriculture;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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