Publication

Going beyond perfect rationality: drought risk, economic choices and the influence of social networks

van Duinen, R., Fialtova, T., Jager, W. & van der Veen, A., Nov-2016, In : Annals of Regional Science. 57, 2-3, p. 335-369 35 p.

Research output: Contribution to journalArticleAcademicpeer-review

APA

van Duinen, R., Fialtova, T., Jager, W., & van der Veen, A. (2016). Going beyond perfect rationality: drought risk, economic choices and the influence of social networks. Annals of Regional Science, 57(2-3), 335-369. https://doi.org/10.1007/s00168-015-0699-4

Author

van Duinen, Rianne ; Fialtova, Tatiana ; Jager, Wander ; van der Veen, Anne. / Going beyond perfect rationality : drought risk, economic choices and the influence of social networks. In: Annals of Regional Science. 2016 ; Vol. 57, No. 2-3. pp. 335-369.

Harvard

van Duinen, R, Fialtova, T, Jager, W & van der Veen, A 2016, 'Going beyond perfect rationality: drought risk, economic choices and the influence of social networks' Annals of Regional Science, vol. 57, no. 2-3, pp. 335-369. https://doi.org/10.1007/s00168-015-0699-4

Standard

Going beyond perfect rationality : drought risk, economic choices and the influence of social networks. / van Duinen, Rianne; Fialtova, Tatiana; Jager, Wander; van der Veen, Anne.

In: Annals of Regional Science, Vol. 57, No. 2-3, 11.2016, p. 335-369.

Research output: Contribution to journalArticleAcademicpeer-review

Vancouver

van Duinen R, Fialtova T, Jager W, van der Veen A. Going beyond perfect rationality: drought risk, economic choices and the influence of social networks. Annals of Regional Science. 2016 Nov;57(2-3):335-369. https://doi.org/10.1007/s00168-015-0699-4


BibTeX

@article{2d7a7a19c8e04b688be79e6017652ed8,
title = "Going beyond perfect rationality: drought risk, economic choices and the influence of social networks",
abstract = "Theoretical and experimental studies from psychological and behavioral sciences show that heuristics and social networks play an important role in decision-making under risk. The goal of this paper is to investigate the effects of empirical social networks and different behavioral rules on farmers' irrigation adoption under drought risk and its impacts on several macroeconomic indicators such as the rate of adaptation, water demand and regional agricultural income. We present an application of a spatial economic ABM which is able to simulate the effect of droughts on crop production, farm income and farm decision-making. The agents' population is parameterized using survey data, including data on social networks. Four experiments are conducted combining two climate scenarios with two behavioral scenarios (maximizers vs. heuristic-based agents). The results show that the adoption process follows a different path in the scenario with heuristic-based farmers. The adoption of irrigation is slower in the short run due to reliance on information from social networks and farmers' uncertainty regarding drought events. This results in agricultural income loss and a lower water demand in the short run compared to the scenario with maximizing agents.",
keywords = "AGENT-BASED MODELS, CLIMATE-CHANGE, FARM-LEVEL, COMPUTATIONAL ECONOMICS, PROTECTION MOTIVATION, PROSPECT-THEORY, ATTITUDE-CHANGE, WATER SCARCITY, SELF-EFFICACY, FEAR APPEALS",
author = "{van Duinen}, Rianne and Tatiana Fialtova and Wander Jager and {van der Veen}, Anne",
year = "2016",
month = "11",
doi = "10.1007/s00168-015-0699-4",
language = "English",
volume = "57",
pages = "335--369",
journal = "Annals of Regional Science",
issn = "0570-1864",
publisher = "SPRINGER",
number = "2-3",

}

RIS

TY - JOUR

T1 - Going beyond perfect rationality

T2 - drought risk, economic choices and the influence of social networks

AU - van Duinen, Rianne

AU - Fialtova, Tatiana

AU - Jager, Wander

AU - van der Veen, Anne

PY - 2016/11

Y1 - 2016/11

N2 - Theoretical and experimental studies from psychological and behavioral sciences show that heuristics and social networks play an important role in decision-making under risk. The goal of this paper is to investigate the effects of empirical social networks and different behavioral rules on farmers' irrigation adoption under drought risk and its impacts on several macroeconomic indicators such as the rate of adaptation, water demand and regional agricultural income. We present an application of a spatial economic ABM which is able to simulate the effect of droughts on crop production, farm income and farm decision-making. The agents' population is parameterized using survey data, including data on social networks. Four experiments are conducted combining two climate scenarios with two behavioral scenarios (maximizers vs. heuristic-based agents). The results show that the adoption process follows a different path in the scenario with heuristic-based farmers. The adoption of irrigation is slower in the short run due to reliance on information from social networks and farmers' uncertainty regarding drought events. This results in agricultural income loss and a lower water demand in the short run compared to the scenario with maximizing agents.

AB - Theoretical and experimental studies from psychological and behavioral sciences show that heuristics and social networks play an important role in decision-making under risk. The goal of this paper is to investigate the effects of empirical social networks and different behavioral rules on farmers' irrigation adoption under drought risk and its impacts on several macroeconomic indicators such as the rate of adaptation, water demand and regional agricultural income. We present an application of a spatial economic ABM which is able to simulate the effect of droughts on crop production, farm income and farm decision-making. The agents' population is parameterized using survey data, including data on social networks. Four experiments are conducted combining two climate scenarios with two behavioral scenarios (maximizers vs. heuristic-based agents). The results show that the adoption process follows a different path in the scenario with heuristic-based farmers. The adoption of irrigation is slower in the short run due to reliance on information from social networks and farmers' uncertainty regarding drought events. This results in agricultural income loss and a lower water demand in the short run compared to the scenario with maximizing agents.

KW - AGENT-BASED MODELS

KW - CLIMATE-CHANGE

KW - FARM-LEVEL

KW - COMPUTATIONAL ECONOMICS

KW - PROTECTION MOTIVATION

KW - PROSPECT-THEORY

KW - ATTITUDE-CHANGE

KW - WATER SCARCITY

KW - SELF-EFFICACY

KW - FEAR APPEALS

U2 - 10.1007/s00168-015-0699-4

DO - 10.1007/s00168-015-0699-4

M3 - Article

VL - 57

SP - 335

EP - 369

JO - Annals of Regional Science

JF - Annals of Regional Science

SN - 0570-1864

IS - 2-3

ER -

ID: 31187496