Work

My neighbour as myself? An experimental investigation of spatial patterns of risk preferences among smallholder farmers

Year: 2022

Type: article

Abstract: Farmers could be spatially clustered according to their risk attitude. Previous studies neither investigated such effects nor incorporated spatial terms in models examining risk preferences and attitudes. We examined decision-making under risk using a lottery-task experiment and then measured spatial patterns through spatial autocorrelation analysis and spatial regression models. The results indicate that there is a significant neighbourhood effect among farmers in the region. Specifically, farmers in proximity exhibit similar risk preferences. We tested the implication of the spatially distributed risk preferences on self-confidence and found that willingness to take risks has a significant positive relationship with confidence in making adoption decisions. Failing to account for spatial distribution may have ramifications for interventions and policies as the opportunity for integration of mechanisms better suited for neighbourhood specific risk preferences may be missed.

Source: Scientific African

DOI: 10.1016/j.sciaf.2022.e01261

Authors: Omotuyole I. Ambali, Toritseju Begho

Institutions: University of Reading, Scotland's Rural College

Language: English

Topic: Decision-Making and Behavioral Economics

Subfield: General Decision Sciences

Field: Decision Sciences

Domain: Social Sciences

SDG: Zero hunger

Open Access status: gold

Estimated APC paid: $200