-nineties, agricultural economists discuss the suitability of “weather derivatives” as hedging instruments for volumetric risks in agriculture … farmers’ willingness-to-pay (demand function) for weather derivatives. The model considers both the derivative’s farmspecific … risk reduction capacity and the individual farmer’s risk acceptance. Applying it to the exemplary case of a Brandenburg …

developed in which farmers who live around a circular lake engage in trade with their adjacent neighbors. The payoffs from this … other farmers. During his childhood, each son observes the strategies and the payoffs of his father and of the trading …