; Behavioral Economics: Experience and Resources | Conferences | AgRisk Library


Conference Name Behavioral Economics: Experience and Resources

Raymond E. Massey


This session has two objectives: 1) show how behavioral economics has been and can be used in understanding decisions made by managers facing uncertain outcomes and 2) provide the audience with a summary of resources (books, websites and journal articles) used to create extension programs that incorporate behavioral economic principles.

I have incorporated behavioral economics into extension programs for the past two years. The audience response has been very positive. The use of personal response transmitters during the presentations has demonstrated that minor (innocuous?) changes do influence decisions, contrary to their default beliefs. Farm publications have carried stories about these extension programs. Bankers and agricultural organizations have requested that the programs be conducted for their clients and members. Part of this session will be to convince the listeners of the value of incorporating behavioral economics into their programs.

Because most farm management specialists have not had classes in behavioral economics, this is a new specialization for them. Several good books, websites and journal articles have been written that give various lessons in behavioral economics. Part of this session will be an overview (with handout) of these resources and what aspects of behavioral economics they address. This overview should help the listener decide which resources to first pursue if they decide to incorporate the insights.

This session will address human risk. Managers need to understand how they unconsciously make decisions so that they are aware of biases and make better decisions.