Do fishermen have different attitudes toward risk? An application of prospect theory to the study of Vietnamese fishermen

Nguyen, Quang and Leung, PingSun (2009) Do fishermen have different attitudes toward risk? An application of prospect theory to the study of Vietnamese fishermen. Journal of Agricultural and Resource Economics, 34 (3). pp. 518-538. ISSN 1068-5502

[img]
Preview
PDF - Published version (with publisher's formatting)
Download (320kB) | Preview

Abstract

Field experiment and household survey data are combined to investigate whether working in a risky occupation such as fishing makes fishermen have different risk preferences than individuals in other occupations. Prospect theory is utilized as the main analytical framework and a structural model approach is developed to simultaneously correlate the parameters of the utility function under prospect theory with other socioeconomic variables. The key finding is that working in fishing makes economic agents less risk averse than others. Fishermen also tend to be less sensitive to probability weighting changes in the experiment. It is possible that fishermen have adapted to their unique environment by using specific heuristics for decision making under conditions of uncertainty.

Item Type: Article
Research Areas: A. > Business School > Economics
A. > Business School > International Management and Innovation
Item ID: 16090
Notes on copyright: Original publication in Journal of Agricultural and Resource Economics 34(3):518–538. Copyright 2009 Western Agricultural Economics Association. Reproduced in this repository (eprints.mdx.ac.uk/) as permitted journal's copyright terms.
Useful Links:
Depositing User: Quang Nguyen
Date Deposited: 19 May 2015 10:04
Last Modified: 05 Apr 2019 00:03
URI: https://eprints.mdx.ac.uk/id/eprint/16090

Actions (login required)

Edit Item Edit Item