Farmers' risk preferences in 11 European farming systems: A multi-country replication of Bocquého et al. (2014)

authored by

Jens Rommel, Julian Sagebiel, Marieke Cornelia Baaken, Jesús Barreiro-Hurlé, Douadia Bougherara, Luigi Cembalo, Marija Cerjak, Tajana Čop, Mikołaj Czajkowski, María Espinosa-Goded, Julia Höhler, Laure Kuhfuss, Carl-Johan Lagerkvist, Margaux Lapierre, Marianne Lefebvre, Bettina Matzdorf, Edward Ott, Antonio Paparella, Erika Quendler, Macario Rodriguez-Entrena, Christoph Schulze, Tanja Šumrada, Annika Tensi, Sophie Thoyer, Marina Tomić Maksan, Riccardo Vecchio, Marc Willinger, Katarzyna Zagórska

Abstract

We replicate Bocquého et al. (2014), who used multiple price lists to investigate the risk preferences of 107 French farmers. We collected new data from 1430 participants in 11 European farming systems. In agreement with the original study, farmers' risk preferences are best described by Cumulative Prospect Theory. Structural model estimates show that farmers in the new samples are, on average, less loss averse and more susceptible to probability distortion than in the original study. Explorative analyses indicate differences between estimation approaches, as well as heterogeneity between and within samples. We discuss challenges in replications of economic experiments with farmers across farming contexts.

Organisation(s)

Institute of Environmental Planning

External Organisation(s)

Swedish University of Agricultural Sciences
German Centre for Integrative Biodiversity Research (iDiv) Halle-Jena-Leipzig
Philipps-Universität Marburg
European Commission Joint Research Centre (JRC)
Center for Environmental Econimics - Montpellier (CEE-M)
Monte S. Angelo University Federico II
University of Zagreb
University of Warsaw
Charles University
Universidad de Sevilla
Wageningen University and Research
The James Hutton Institute
University of Angers
Leibniz Centre for Agricultural Landscape Research (ZALF)
Universidad de Cordoba
University of Ljubljana
Helmholtz Centre for Environmental Research (UFZ)
Bundesanstalt für Agrarwirtschaft und Bergbauernfragen (BAB)

Type

Article

Journal

Applied Economic Perspectives and Policy

Volume

45

Pages

1374-1399

No. of pages

26

ISSN

2040-5790

Publication date

03.08.2023

Publication status

Published

Peer reviewed

Yes

ASJC Scopus subject areas

Development, Economics and Econometrics

Electronic version(s)

https://doi.org/10.1002/aepp.13330 (Access: Open)
https://doi.org/10.15488/14040 (Access: Open)