RT Journal Article
SR Electronic
T1 Are Commercial Fishers Risk-Lovers?
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 550
OP 560
DO 10.2307/3655810
VO 80
IS 4
A1 Eggert, Håkan
A1 Martinsson, Peter
YR 2004
UL http://le.uwpress.org/content/80/4/550.abstract
AB Fishers are risk-averse according to most empirical studies, while expected-utility theory predicts risk neutrality even for sizable stakes. We test this prediction using data from a stated-choice experiment with Swedish commercial fishers. Our results show that only 48% of the fishers can be broadly characterized as risk-neutral, while 26% are modestly risk-averse, and 26% are strongly risk-averse. Fishers are more risk-neutral the higher the fraction of their household’s income comes from fishing. Sensitivity testing implies that modest stake decisions like a few days of fishing are not influenced by wealth level. (JEL D81; Q22)