Table 1 Choice options with associated payoffs and risk
From: Farmers’ risk attitude, agricultural technology adoption and impacts in Eastern India
S. N | Choice | Event | Probability | Payoff (INR) | Expected payoff (INR) | Risk* | CRRA** | Risk aversion category |
|---|---|---|---|---|---|---|---|---|
1 | Choice_1 | – | – | 40 | 40 | 0.00 | 2 < r | Highly risk averse |
2 | Choice_2 | A (loss) | 0.5 | 30 | 45 | 10.60 | 1.2 < r < 2 | Medium risk aversion |
B (gain) | 0.5 | 60 | ||||||
3 | Choice_3 | A (loss) | 0.5 | 20 | 60 | 28.30 | 0.67 < r < 1.2 | Low risk averse |
B (gain) | 0.5 | 100 | ||||||
4 | Choice_4 | A (loss) | 0.5 | 10 | 75 | 46.00 | 0.35 < r < 0.67 | Medium risk seeking |
B (gain) | 0.5 | 140 | ||||||
5 | Choice_5 | A (loss) | 0.5 | 00 | 90 | 63.60 | r < 0.35 | Highly risk seeking |
B (gain) | 0.5 | 180 |