Decision making for animal health and welfare: integrating risk-benefit analysis with prospect theory.
Bottom Line: This study integrated risk-benefit analysis with prospect theory with the overall objective of identifying the type of management behavior represented by farmers' choices of mastitis control options (MCOs).Farmers' assessments of these MCOs were found to be based on asymmetrical evaluations of risks and benefits, suggesting that farmers' management behavior depends on their individual reference point.These findings are of practical importance for farmers and agribusiness and in public health protection work to reduce the current extensive use of antibiotics in dairy herds.
Affiliation: Department of Economics, Swedish University of Agricultural Sciences, P.O. Box 7013, SE-75007, Uppsala, Sweden.Show MeSH
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Mentions: Figs. 1 and 2 show kernel density estimates of the distributions of the benefit/risk ratios. From these it is evident that the benefit/risk ratios were distributed around 1, implying that for both types of MCO there were farmers who acted according to loss aversion and reverse loss aversion. Furthermore, a visual inspection of Fig. 1 suggests that a larger part of the sample is situated below 1, again suggesting weaker attitudes for MCO evaluated in the benefit domain compared with those evaluated in the risk domain. A visual inspection of Fig. 2 suggests that a larger part of that sample is situated above 1, suggesting stronger attitudes for MCO evaluated in the benefit domain compared with those evaluated in the risk domain. A Friedman test statistic of 11.557 (p-value: 0.001) significantly rejected the hypothesis that the two benefit/risk ratios follow the same distribution, lending further support to the conclusion that the two benefit/risk ratios represent different evaluations.
Affiliation: Department of Economics, Swedish University of Agricultural Sciences, P.O. Box 7013, SE-75007, Uppsala, Sweden.