Small-Scale Fishers and Risk Preferences

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Date
2007
Journal Title
Journal ISSN
Volume Title
Publisher
Marine Resource Economics
Abstract
Using an experimental approach, we investigate the risk preferences of artisanal fishermen in Tanzania waters of Lake Victoria. The experiment concerns pairwise comparisons of hypothetical fishing trips that vary in expected mean and spread of the net revenue. The results show that about 34% of the fishermen can be considered as risk neutral, 32% as risk averse, and 34% as risk seekers. Econometric analysis indicates that the likelihood of belonging to the risk-seeking group increases if motorboats are used, if fishing is the main source of household income, and if the fisherman is targeting Nile perch. Asset ownership and perhaps socioeconomic variables influence risk preferences.
Description
Keywords
Risk aversion, artisanal fishermen, Lake Victoria, Nile perch, dagaa, Tanzania
Citation
Eggert, H. and Lokina, R.B., 2007. Small-scale fishermen and risk preferences. Marine Resource Economics, pp.49-67.