Wednesday,  June 19, 2019

Articles

Volume 63 (2014), Number 2: 67-80

Muss man begrenzte Rationalität und heuristisches Entscheiden bei der Erklärung für die Verbreitung von Wetterindexversicherungen in der Landwirtschaft berücksichtigen?
– Eine Untersuchung auf de

Do we Need to Consider Bounded Rationality and Heuristic Decision Making when Trying to Understand the Weak Development of Weather-Index Insurance Markets in Agriculture?
– An Exploratory Invest

Oliver Mußhoff, Sven Grüner und Norbert Hirschauer

Weather-index insurances are innovative risk management instruments that - compared to conventional insurances - cause low administration and regulation costs and are not accompanied by moral hazard or adverse selection problems. Despite these advantages, farmers make little use of weather-index insurances as yet. With this in mind, the present study focuses on the question if bounded rationality provides an explanation for the missing willingness to adopt this type of insurance. For lack of a natural experiment, an “extralaboratory experiment” is carried out in the form of a multi-period, single-person business simulation game with students of agricultural sciences. Two major questions are to be answered: first, does the demand for weather-index insurances change if the subjects are not only informed about the total insurance premium but also about the loading? Second, does demand change in a framing where subjects are told that the (unchanged loading) is the result of a subsidized insurance offer? In the experiment, the explicit communication of the loading did not have a significant effect. However, demand increased in the subsidization framing. This indicates that government funding is per se considered as a quality signal and that subsidized actions are preferred without an individual analysis of their relative competitiveness.Wetterindexversicherungen stellen innovative Risikomanagementinstrumente dar, die gegenüber herkömmlichen Versicherungen den Vorteil geringer Administrations- und Regulierungskosten aufweisen. Darüber hinaus entstehen keine Moral-Hazard- und Adverse-Selection-Probleme. Dennoch werden Wetterindexversicherungen in der Landwirtschaft bisher kaum eingesetzt. Vor diesem Hintergrund geht es im vorliegenden Beitrag um die Frage, ob begrenzte Rationalität ein Erklärungsansatz für die fehlende Adoptionsbereitschaft sein kann. Mangels eines natürlichen Experiments wird hierzu ein „Extra-Laboratory- Experiment“ in Form eines mehrperiodischen Einpersonen- Unternehmensplanspiels mit Studierenden der Agrarwissenschaften durchgeführt. Durch das Experiment sollen zwei zentrale Fragen beantwortet werden: Erstens, verändert sich die Nachfrage nach Wetterindexversicherungen, wenn den Teilnehmern explizit kommuniziert wird, welchen Anteil der Aufpreis an der gesamten Versicherungsprämie hat? Zweitens, verändert sich die Nachfrage in einem Framing, in dem sich der für die Teilnehmer unveränderte Aufpreis durch eine Subventionierung ergibt? Im Experiment hatte die explizite Kommunikation des Aufpreises keinen signifikanten Einfluss auf die Nachfrage. Mit einer Subventionierung von Wetterindexversicherungen stieg (bei gleichbleibenden Kosten) allerdings die Nachfrage. Dies ist ein Indiz, dass eine staatliche Förderung als Gütesignal wahrgenommen wird und subventionierte Handlungen auch ohne Analyse ihrer relativen ökonomischen Vorzüglichkeit bevorzugt werden.

Weather-index insurances are innovative risk management instruments that - compared to conventional insurances - cause low administration and regulation costs and are not accompanied by moral hazard or adverse selection problems. Despite these advantages, farmers make little use of weather-index insurances as yet. With this in mind, the present study focuses on the question if bounded rationality provides an explanation for the missing willingness to adopt this type of insurance. For lack of a natural experiment, an “extralaboratory experiment” is carried out in the form of a multi-period, single-person business simulation game with students of agricultural sciences. Two major questions are to be answered: first, does the demand for weather-index insurances change if the subjects are not only informed about the total insurance premium but also about the loading? Second, does demand change in a framing where subjects are told that the (unchanged loading) is the result of a subsidized insurance offer? In the experiment, the explicit communication of the loading did not have a significant effect. However, demand increased in the subsidization framing. This indicates that government funding is per se considered as a quality signal and that subsidized actions are preferred without an individual analysis of their relative competitiveness.

Back to Content

This is a free article. You can open it here.

Kontaktautor:
PROF. DR. OLIVER MUßHOFF
Georg-August-Universität Göttingen
Fakultät für Agrarwissenschaften,
Department für Agrarökonomie und Rurale Entwicklung
Platz der Göttinger Sieben 5, 37073 Göttingen
E-Mail: oliver.musshoff@agr.uni-goettingen.de


Login

NEW: GJAE listed with Impact Factor!

The German Journal of Agricultural Economics (GJAE) is listed in the ‚Impact Factor List‘. Our current (2016) impact factor is 0.489. So if you plan to write an article, use this evidence for getting cited.

Question/ suggestion?

Do you have any questions, please don't hesitate to get in touch with us.

Always up-to-date

Please send us your e-mail address to be informed -for free- about the upcoming issues.

powered by

dfv Mediengruppe
Our partners:
www.agrarzeitung.de www.feedmagazine.net