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Heterogeneous and Correlated Risk Preferences in Commercial Fishermen: The Perfect Storm Dilemma

  • Martin Smith

    ()

  • James Wilen

    ()

Commercial fishing involves both physical and financial risks. This combination questions whether fishermen are inherently risk-loving, whether physical and financial risk preferences are correlated, and how much preferences vary across fishermen. This paper addresses these questions with a panel data set of daily participation decisions in the California sea urchin dive fishery. Weather buoy data and the prevalence of great white sharks at a particular fishing site proxy for physical risk. Overall, urchin fishermen are not risk-loving on average, risk preferences are heterogeneous, and there is some evidence that risk preferences are positively correlated across physical and financial domains. Copyright Springer Science + Business Media, Inc. 2005

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File URL: http://hdl.handle.net/10.1007/s11166-005-2930-7
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Article provided by Springer in its journal Journal of Risk and Uncertainty.

Volume (Year): 31 (2005)
Issue (Month): 1 (July)
Pages: 53-71

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Handle: RePEc:kap:jrisku:v:31:y:2005:i:1:p:53-71
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100299

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