The Source of Uncertainty Influences Technology Adoption

• Agricultural Economics Workshop

Date and Location

Thursday, March 3, 2022, 4:10 PM - 5:30 PM
Online Meeting, Zoom

Abstract

We use data from a framed field economic experiment to examine growers’ preferences towards two types of uncertain outcomes, the first resulting from a game against nature and the second involving strategic interaction. We find evidence that, on average, growers prefer the game against nature. Moreover, we find that they prefer such a game even for ranges over which the game involving strategic interaction has a higher likelihood of success. These results shed light on Florida citrus growers’ choices regarding the adoption of scientifically unproven antibiotic sprays over insecticide spray coordination for dealing with the devastating impact of a pernicious disease. The insights we obtain help us better understand growers’ preferences over different types of uncertainty, which can play a key role in their technology adoption decisions. Our findings should be useful for policymakers to realize the implications of allowing the use of uncertain technologies, and the detrimental impact they can have in dealing with issues that involve externalities such as those present in pest and disease management.