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

Article


Nguyen, Q. and Leung, P. 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.
TypeArticle
TitleDo fishermen have different attitudes toward risk? An application of prospect theory to the study of Vietnamese fishermen
AuthorsNguyen, Q. and Leung, P.
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.

PublisherWestern Agricultural Economics Association
JournalJournal of Agricultural and Resource Economics
ISSN1068-5502
Publication dates
Print01 Dec 2009
Publication process dates
Deposited19 May 2015
Output statusPublished
Publisher's version
Copyright Statement

Original publication in Journal of Agricultural and Resource Economics 34(3):518–538. Copyright 2009 Western Agricultural Economics Association. Reproduced in the Middlesex University Research Repository as permitted journal's copyright terms.

Web address (URL)http://www.waeaonline.org/jareonline/archives/34.3%20-%20December%202009/JARE,Dec2009,pp518,Nguyen.pdf
LanguageEnglish
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