Risk,learning, and technology adoption |
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| Authors: | Bradford L. Barham Jean‐Paul Chavas Dylan Fitz Vanessa Ríos‐Salas Laura Schechter |
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| Affiliation: | 1. Department of Agricultural and Applied Economics, University of Wisconsin, Madison, WI, USA;2. Economics Department, Davidson College, Davidson, NC, USA;3. School of Social Work, University of Wisconsin, Madison, WI, USA |
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| Abstract: | This article explores how decision makers learn and use information, with an application to the adoption of biotechnology in agriculture. The empirical analysis relies on experimental and survey data measuring risk preferences, learning processes, and the adoption of genetically modified (GM) seeds among U.S. grain farmers. While controlling for risk aversion, we link individual learning rules with the cognitive abilities of each decision maker and their actual GM adoption decisions. We find evidence that very few individuals are Bayesian learners, and that the population of farmers is quite heterogeneous in terms of learning rules. This suggests that Bayesian learning (as commonly assumed in the analysis of agricultural technology adoption) is not an appropriate characterization. In addition, we do not find a strong relationship between observed learning styles and the timing of GM seed adoption. To the extent that learning is a key part of the process of technology adoption, this suggests the presence of much unobserved heterogeneity in learning among farmers. |
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| Keywords: | Risk Learning Technology adoption C91 D81 D83 O33 Q16 |
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