Preferences, Beliefs, and Technology Adoption: The Case of Counterfeit Agricultural Inputs
Department of Economics & Business
Friday, March 2, 2018
Taylor-Hibbard Seminar Room (Rm103)
12:00 pm-1:15 pm
We study technology adoption in a context where products are sometimes counterfeited, adulterated, or otherwise low quality. In addition to the risk introduced by the presence of low quality herbicide in Uganda, maize farmers additionally face ambiguity because the rate of low quality product is largely unknown. Willingness to pay could depend not only on risk and ambiguity preferences, but also the spread and distribution of beliefs about the rate of low quality product. Using data from a standard household survey and an artefactual field experiment (lab-in-the-field games), we study decision-making under uncertainty through the lens of three models: expected utility theory, subjective expected utility theory, and the smooth model of decision making under ambiguity.