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2011-08-24 | Peer Reviewed

Attitudes Toward Uncertainty Among the Poor: Evidence from Rural Ethiopia

Akay, Alpaslan, Peter Martinsson, Haileselassie Medhin, and Stefan Trautmann, 2010, "Attitudes Toward Uncertainty Among the Poor: Evidence from Rural Ethiopia", Theory and Decision, doi: 10.1007/s11238-011-9250-y.
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We investigate risk and ambiguity attitudes among Ethiopian farmers in one of the poorest regions of the world.

Strong risk
aversion and ambiguity aversion were found with the
Ethiopian farmers. We compared their attitudes to those of a Western
student sample elicited by the same decision task. Ambiguity
aversion was similar for farmers and students, but farmers were
more risk averse. Our results show that ambiguity aversion
is not restricted to Western student populations, and that studies
of agricultural decisions may benefit from explicitly
considering ambiguity attitudes.