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

Author Info

  • Martin Smith

    ()

  • James Wilen

    ()

Abstract

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

Keywords: risk domains; risk preferences; fishing behavior;

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Cited by:

  1. Johnson, Ayana Elizabeth & Saunders, Daniel Kaiser, 2014. "Time preferences and the management of coral reef fisheries," Ecological Economics, Elsevier, vol. 100(C), pages 130-139.
  2. Junjie Zhang & Martin Smith, 2011. "Heterogeneous Response to Marine Reserve Formation: A Sorting Model approach," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 49(3), pages 311-325, July.
  3. Kerri Brick & Martine Visser & Justine Burns, 2012. "Risk Aversion: Experimental Evidence from South African Fishing Communities," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(1), pages 133-152.
  4. Quang Nguyen, 2011. "Does nurture matter: Theory and experimental investigation on the effect of working environment on risk and time preferences," Journal of Risk and Uncertainty, Springer, vol. 43(3), pages 245-270, December.
  5. Smith, Martin D. & Zhang, Junjie & Coleman, Felicia C., 2008. "Econometric modeling of fisheries with complex life histories: Avoiding biological management failures," Journal of Environmental Economics and Management, Elsevier, vol. 55(3), pages 265-280, May.
  6. Abbott, Joshua K. & Wilen, James E., 2011. "Dissecting the tragedy: A spatial model of behavior in the commons," Journal of Environmental Economics and Management, Elsevier, vol. 62(3), pages 386-401.
  7. Nguyen, Quang, 2009. "Do fishermen have different preferences?: Insights from an experimental study and household data," MPRA Paper 16012, University Library of Munich, Germany.

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