Are Commercial Fishers Risk-Lovers?

摘要

Fishers are risk-averse according to most empirical studies, while expected-utility theory predicts risk neutrality even for sizable stakes. We test this prediction using data from a stated-choice experiment with Swedish commercial fishers. Our results show that only 48% of the fishers can be broadly characterized as risk-neutral, while 26% are modestly risk-averse, and 26% are strongly risk-averse. Fishers are more risk-neutral the higher the fraction of their household's income comes from fishing.Sensitivity testing implies that modest stake decisions like a few days of fishing are not influenced by wealth level.