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Conventionally, studies examining the impacts of choice complexity only consider complexity introduced exogenously from … the tasks respondents face. In the context of a stated conjoint survey, this article establishes endogenous complexity … measures through decision-makers' experience known as the endowed bundle before the survey. Results show that complexity should …
Persistent link: https://www.econbiz.de/10005060308
Persistent link: https://www.econbiz.de/10005525148
The relationship between price uncertainty and specific investment is examined in a dynamic model that integrates the theories of real options and investment holdup. Because of weak contract enforcement, bilateral firms cannot use a contract to govern their bilateral investment and exchange...
Persistent link: https://www.econbiz.de/10005525159
In this article we price a precipitation option based on empirical weather data from Germany using different pricing methods, among them Burn Analysis, Index Value Simulation and Daily Simulation. For that purpose we develop a daily precipitation model. Moreover, a de-correlation analysis is...
Persistent link: https://www.econbiz.de/10005525170
Using survey data from 258 Illinois corn farmers, we investigate the relationship between subjective and objective yield measures and their effect on the use of crop insurance. Our findings show that producers view themselves as better than average with respect to yields and in terms of their...
Persistent link: https://www.econbiz.de/10005525171
We model a futures exchange's clearinghouse as a "bank" holding a portfolio of credit lines available to its clearing members and collateralized with clearing margins or, equivalently, a portfolio of short European put basket options. Consequently, the "bank" model measures the clearinghouse's...
Persistent link: https://www.econbiz.de/10005483643
Replaced with revised version of paper 07/21/06.
Persistent link: https://www.econbiz.de/10005483663
A risky business environment for agricultural producers coupled with human risk elements unique to family businesses, points to the need for extension programs that integrate traditional risk management concepts into curriculums focused on the potentially unique educational needs of family farm...
Persistent link: https://www.econbiz.de/10005483693
Very little attention has been given to the modeling of yield distribution for crops and regions in which yields exhibit irregular behavior. We undertake a statistical case study of Texas upland cotton and propose an alternative mixture distribution based on regime-switching model in which the...
Persistent link: https://www.econbiz.de/10005483707
Contingent wildfire insurance and fuel management cost-sharing programs are becoming more prevalent in western states. This paper develops a model to examine the incentive effects of these two mechanisms for private investment in wildfire risk mitigation. The model shows that contingent...
Persistent link: https://www.econbiz.de/10005483714