The roles of risk and ambiguity in technology adoption

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2014
Volume: 97
Issue: C
Pages: 204-218

Authors (5)

Barham, Bradford L. (not in RePEc) Chavas, Jean-Paul (not in RePEc) Fitz, Dylan (not in RePEc) Salas, Vanessa Ríos (not in RePEc) Schechter, Laura (University of Wisconsin-Madiso...)

Score contribution per author:

0.402 = (α=2.01 / 5 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study the impacts of risk and ambiguity aversion on the adoption of new technologies, specifically genetically modified (GM) corn and soy seeds. We conduct experiments measuring risk and ambiguity aversion with Midwestern grain farmers. Risk aversion has only a small impact on the timing of adoption of GM soy, while ambiguity-aversion has a large impact speeding up farmer adoption of GM corn. We hypothesize that this unusual finding is due to the fact that GM corn often contains an insect-resistance trait which reduces the ambiguity of pest damages for adopters. GM soy never contains this insect-resistance trait. This highlights the importance of distinguishing between risk and ambiguity when studying the effects of aversion to uncertainty on adoption of new technologies.

Technical Details

RePEc Handle
repec:eee:jeborg:v:97:y:2014:i:c:p:204-218
Journal Field
Theory
Author Count
5
Added to Database
2026-01-25