We examined prospect theory and reference point adaptation following gains or losses using participants from China, Korea, and the US. Supporting prospect theory, we found in Studies 1 and 2 that subjects from all three countries generally exhibited loss aversion and a greater propensity for...

According to prospect theory (Kahneman & Tversky, 1979), gains and losses are measured from current wealth, which serves as a reference point. We attempted to ascertain to what extent the reference point shifts following gains or losses. In questionnaire studies we asked subjects what stock...

We examined reference point adaptation following gains or losses in security trading using participants from China, Korea, and the US. In both questionnaire studies and trading experiments with real money incentives, reference point adaptation was larger for Asians than for Americans. Subjects...

The effectiveness of the Class III Milk futures market is analyzed in terms of the reduction in Value-at-Risk (VaR) for milk producers located in four regions: Wisconsin, Northeast, Florida and California. Constant hedge ratios are estimated using Myers and Thompson's (1989) generalized...

Coffee and cocoa are two agricultural commodities produced mainly in developing countries and exported almost entirely to high income industrialized countries. The international market for these products is marked by high price instability. This paper investigates whether monetary policy...

Rice sector contributes significantly to secure households with regard to their food needs but also to the creation of employments and income generation. The sector development and its evolution over the years have been marked by various policies and approaches. These development stages of the...

Entrepreneurship means making discrete changes in livelihood activities that involve substantial risks to income. While the rewards may be substantial, transactions costs may make decisions irreversible. This paper draws a comparison between entrepreneurship and technology adoption. Adopting a...

Three theoretical non-point water pollution control schemes were tested repeatedly in experimental studies – tax-subsidy scheme (K. Segerson, 1988), collective fining (Xepapadeas, 1991) and random fining (Xepapadeas, 1991). Camacho and Requate (2004) summarized results reported by Spraggon...

Our study uses the data collected during the implementation of the tobacco buyout program inKentucky to evaluate how rural households, diverse in income, age, family structure, location,education level, and other characteristics, made a choice between annuities and a lump-sumpayment. Subjects in...