Framing the Allais paradox as a daily farm decision problem: Tests and explanations

Israel Finkelshtain*, Eli Feinerman

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

4 Scopus citations

Abstract

The well-known Allais paradox is reformulated as a daily far 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.

Original languageEnglish
Pages (from-to)155-167
Number of pages13
JournalAgricultural Economics (United Kingdom)
Volume15
Issue number3
DOIs
StatePublished - Jan 1997

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