Perceptions of farm size heterogeneity and demand for group index insurance

Artikel

Weather insurance is a financial instrument proposed to increase coverage of unprotected weather shocks in developing countries. Structuring sales as group-based products has been argued as a strategy to increase the attractiveness of index insurance, raising the question as to what impacts farmer demand for group insurance choices. We test if farmers prefer to purchase real-world insurance products as groups, and if groups of more similar individuals are more likely to demand group over individual index insurance for the upcoming season. We exogenously assign farmers into groups of similar versus dissimilar perceived farm size. We find that farmers, when offered, prefer group over individual insurance contracts, and that groups of farmers who perceive each other to be more similar in farm size are more likely to purchase in a group, but purchase less insurance on average.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Games ; ISSN: 2073-4336 ; Volume: 11 ; Year: 2020 ; Issue: 1 ; Pages: 1-21 ; Basel: MDPI

Classification and Topics

• Classification: Wirtschaft ; Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡ ; Microeconomic Analyses of Economic Development ; Social Choice; Clubs; Committees; Associations ; Agricultural Finance
• Subject: agriculture ; group contracts ; index insurance ; risk

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Vasilaky, Kathryn N. ; Martínez Sáenz, Sofía ; Stanimirova, Radost ; Osgood, Daniel Edward
• Event: Veröffentlichung
• (who): MDPI
• (where): Basel
• (when): 2020

Further information

• DOI: doi:10.3390/g11010015
• Handle: http://hdl.handle.net/10419/257434
• Last update: 10.03.2025, 11:45 AM CET