Information Acquisition Ability and Farmers’ Herd Behavior in Rice–Crayfish Coculture System Adoption

Weihong Huang (), Caiyan Yang, Ke Liu and Rui Min
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Weihong Huang: School of Business, Central South University of Forestry and Technology, Changsha 410004, China
Caiyan Yang: School of Business, Central South University of Forestry and Technology, Changsha 410004, China
Ke Liu: School of Management, Wuhan Polytechnic University, Wuhan 430023, China
Rui Min: School of Economics, South-Central Minzu University, Wuhan 430074, China

Agriculture, 2023, vol. 13, issue 10, 1-15

Abstract: Rice–crayfish coculture systems (RCSs) have been widely promoted in China as an efficient circular agriculture model that can simultaneously improve rice quality, raise the efficiency of utilization of resources, and increase farmers’ incomes. However, the herd behavior of farmers in the adoption of the rice–crayfish coculture system warrants more attention, as the rational adoption of this system by farmers is a prerequisite for achieving the above objectives. This paper analyses the formation mechanism of farmers’ herd behavior based on information cascade theory. Using micro-survey data from 603 farmers in China and a bivariate probit model, we examine the existence of herding effects in the adoption of RCSs by farmers and the inhibitory effect of information acquisition capability on herd behavior. To address possible endogeneity issues, we also conducted a robustness test using the IV-probit model. Furthermore, we tested for between-group differences in agricultural income between farmers with herding adoption and non-herding adoption. The study reveals that the larger the number of prior adopters, the higher the probability of blind adoption behavior by farmers, indicating the existence of a herd effect. Information acquisition ability could significantly inhibit the herd behavior of farmers in the adoption of RCSs. We also found that farmers’ herd behavior in the adoption of these systems was not economically rational. Based on the research findings, we proposed several constructive suggestions for policy perfection.

Keywords: agriculture; circular agriculture; rice–crayfish coculture system; herd behavior; information acquisition ability; farmer (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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