In this study, we experimentally analyze the investment behavior of smallholder farmers in Uganda. We consider a problem of optimal stopping, stylizing an option to invest in a project. We ascertain whether, and to what extent, the real options approach and the classical investment theory can...

This study compares risk attitudes of smallholder farmers elicited from two different lottery designs (i) with fixed payoffs and changing probabilities and (ii) with fixed probabilities and changing payoffs. We utilize a combination of experimental and household survey data collected from 332...

The digital revolution and the ongoing dissemination of mobile phones carry several prospects for smallholder farmers in Sub-Saharan Africa. Food insecurity remains a major issue among African smallholders. Mobile phones could potentially facilitate access to food markets and thus improve food...

Kazakhstan and Germany have different development levels of the agricultural sectors. One of the explanations for this fact might be the different investment behavior of farmers in the two countries. We experimentally analyze whether the investment behavior of farmers is consistent with the...

In the absence of formal financial markets many poor households rely on the mutual exchange of transfers within informal risk sharing networks to protect themselves against adverse events. In this paper we present a model that explains the impact of formal insurance on informal risk sharing and,...

A farmer's uncertainty preferences can play a large role in how he makes production decisions on the farm. We attempt to understand how farmers' household characteristics as well as past harvest shocks affect uncertainty preferences of maize farmers in southern Mexico. By using a series of...