Risk Preferences, Transaction Costs, and Choice of Marketing Contracts: Evidence from a Choice Experiment with Fresh Vegetable Producers
Published online on December 09, 2015
Abstract
Growers’ preferences for a number of marketing contract attributes, as well as the effect of growers’ risk aversion levels on the choice of marketing contracts, were examined with the use of a choice experiment. The main data source for the study is a mail survey administrated to wholesale tomato growers. The findings validate the transaction cost hypothesis and indicate heterogeneity in preferences. On the other hand, risk preferences had limited impact on contract choice.