Affiliation:
1. Uniwersytet Przyrodniczy w Poznaniu
Abstract
The main purpose of this paper is to identify the behavioral factors that impact the investment decisions made by farm managers. A survey carried out in 2023 with 152farms located in Greater Poland was the source of empirical materials. The study suggests that overconfidence and over-optimism are not widespread in the group surveyed. In assessing their own knowledge of investment topics, 74% of farmers claimed to be equally competent as other agricultural producers. When preparing the implementation of an investment, most respondents (47%) foresee a neutral scenario of how the situation could development, 20% for an optimistic scenario and only13% pick a pessimistic one. Nearly25% of interviewees admitted to rely on the brand’s reputation when choosing a fixed asset (the availability heuristic). The vast majority of farmers surveyed (65%) replied that investing their own funds requires a more in-depth analysis. This corroborates the conclusions made by Richard Thaler and Eric Johnson who discovered that people are less willing to risk their own hard-earned money.
Subject
Pulmonary and Respiratory Medicine,Pediatrics, Perinatology and Child Health
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