We designed a field experiment involving real payments to elicit farmers’ risk preferences. Farmers are a very interesting sample to study since risk has always played an important role in agricultural producers’ decisions. Besides, European farmers may face more risky situations in the...

Kahneman and Tversky’s Cumulative Prospect Theory (CPT) has proved to be better suited for representing risk preferences than von Neumann and Morgenstern’s Expected Utility Theory (EUT). We argue that neglecting this may explain to some extent why farmers do not contract crop insurance as...

Based on an authentic case of contracting for environmental property rights, our paper shows several implications of applying the Coases propositions. The case study adds empirical content to basic transaction costs concepts by analyzing the design and implementation of a contractual arrangement...