We develop conceptual and process simulation models to determine the probability of a recall and predict its size. We compare the costs of recalls with and without traceability for a ten year planning horizon by simulating the expected recalls caused by Escherichia coli O157:H7 contamination for...

Risk management strategies are of increasing importance in agriculture. An important question is, what type of risk management strategies are required to reduce farmers’ income risks. Applying a variance decomposition approach using data of more than 3000 Swiss farms over a five year time...

Smallholder farmers’ land allocation decisions in marginal areas of developing countries typically involve a substantial element of risk, especially when they concern input intensive cash crops. Hence, apart from farmers’ resource endowment, their individual level of risk aversion is a...

This article analyzes data on self-reported food insecurity of more than 50,000 individuals in 18 Sub- Saharan African countries over the period 2005 to 2008, when global food prices increased dramatically. The average level of self-reported food insecurity was high but remarkably stable, at...

Using a laboratory experiment, we investigate the validity of stated risks elicited via the Exchangeability Method (EM) using an evaluation method based on de Finetti’s notion of coherence, under which probability estimates are valid if and only if they obey all axioms of probability theory....

The agricultural sectors of Kazakhstan and Germany are at different development levels. One possible explanation for this might be the different investment behavior of farmers. We experimentally analyze whether the investment behavior of farmers is consistent with the normative benchmarks of the...

This paper investigates the effects of network based individual social capital on the access of rural households to services. In the context of development economics, an innovative data collection approach is used to determine network based social capital. The approach originates from the field...

There is growing concern about the impact of climate change on agriculture and the potential need for better risk management instruments that respond to a more risky environment. This is based on the widespread assumption that climate change will increase weather and yield variability and will...

In emerging markets for high-value food products in developing countries, processing companies search for efficient ways to source raw material of consistent quality. One widely embraced approach is contract farming. But relatively little is known about the appropriate design of contracts,...