Scope of Behavioral Economics in Agricultural Decision-Making

Raghavendra Kushawaha, Naresh Kumar Sharma

Abstract: This paper provides a general overview of behavioral economics in agricultural decision-making. In the first part, we discussed how behavioral economics complemented and provided new insights, a different perspective of the understanding of modeling agricultural decisions in ongoing argument of deviation of profit maximization behavior among farmers. Next, farmers? behavioral responses to risk and uncertainty inan inherent risky environment in agricultural activities, in which an alternative approach provides better insightsfor understanding risky decisions. We have also discussed the important behavioral finding of bounded rationality, i. e., cognitive limitation and biases-a significant characteristic that affect the farmers' decisions; finally, we discussed the role of experimental methods in agricultural economics that significantly helps in better policy analysis through behavioral economics.

Keywords: Behavioral Economics, Decision-Making, Agricultural Economics, Risk behavior, Experimental Method

How to Cite?: Raghavendra Kushawaha, Naresh Kumar Sharma, "Scope of Behavioral Economics in Agricultural Decision-Making", Volume 12 Issue 5, May 2023, International Journal of Science and Research (IJSR), Pages: 2479-2484, https://www.ijsr.net/getabstract.php?paperid=SR23527005134, DOI: https://dx.doi.org/10.21275/SR23527005134