Risk, Ambiguity and the Adoption of New Technologies: Experimental Evidence from a developing economy
نویسندگان
چکیده
Despite the expected benefits, the slow adoption of innovations in less developed countries has long been a puzzle. Aside from market constraints, risk-aversion dominates the discussion on the behavioural determinants of technology adoption. This paper investigates the role of ambiguity-aversion as another possible explanation, given farmers may have less information about the outcomes of new technologies compared with traditional technologies. Using primary data from behavioural experiments used to measure risk and ambiguity preferences in the field we find that farmers’ aversion to ambiguity and not risk constrains the adoption of new technologies.
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