U.S. Farmers’ Insurance Choices under Expected Utility Theory and Cumulative Prospect Theory
No 236019, 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts from Agricultural and Applied Economics Association
Towards explaining regional differences in U.S. farmers’ crop insurance choices, we propose a budget heuristic effect within the standard Expected Utility Theory (EUT) framework and conduct theoretical and simulation analyses. We also disentangle the effects of various aspects the cumulative prospect theory (CPT) framework in a separate simulation analysis.
Keywords: agricultural (crop and livestock) insurance; cumulative prospect theory; budget heuristics; mental accounting; Agricultural and Food Policy; Agricultural Finance; Crop Production/Industries; Demand and Price Analysis; Farm Management; Institutional and Behavioral Economics; Marketing; Production Economics; Public Economics; Research Methods/ Statistical Methods; Risk and Uncertainty; D81; D82; G22; G28; Q12; Q18 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cmp, nep-ias and nep-upt
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea16:236019
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