Premium
Framing the Allais paradox as a daily farm decision problem: tests and explanations
Author(s) -
Finkelshtain Israel,
Feinerman Eli
Publication year - 1997
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/j.1574-0862.1997.tb00429.x
Subject(s) - economics , framing effect , framing (construction) , expected utility hypothesis , econometrics , microeconomics , mathematics , mathematical economics , psychology , social psychology , persuasion , structural engineering , engineering
The well‐known Allais paradox is reformulated as a daily farm decision problem. Only 26% of the farmers exhibit violations of the expected utility hypothesis. Moreover, the tendency for violation decreases with the farm operator's education, experience and family size. No effects of the farm main crop or its scale were detected. Finally, when taking into account the possibility of choice errors, we find that the violation rate is statistically insignificant.