Are Commercial Fishers Risk Lovers?
Empirical studies of fishers’ preferences have found that most fishers are risk-averse, while expected-utility theory predicts risk neutrality even for sizable stakes. We test this prediction using data from a stated choice experiment with Swedish commercial fishers. Our results show that almost 90% of the respondents do not behave as expected-utility maximizers. 48% of the fishers can be broadly characterized as risk-neutral, 26% as modestly risk-averse, while 26% are strongly risk-averse. Fishers are more risk-neutral the higher the fraction of their household’s income comes from fishing, while fishers with a positive attitude to individual quotas are more risk-averse. Sensitivity testing implies that decisions with modest stakes like a few days of fishing are not influenced by wealth level.
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|Date of creation:||26 Feb 2003|
|Date of revision:|
|Publication status:||Published in Land Economics, 2004, pages 550-560.|
|Note:||Published in Land Economics, 2004, Vol. 80, pp. 550-560.|
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