FG: 986: Structural Change in Agriculture - TP 01: Experiments on entrepreneurial decision making

The project "Experiments on entrepreneurial decision making" is part of the DFG research group "Structural Change in the agricultural sector." The decision making of farmers has not been much studied in laboratory experiments. The proposed research tends to broaden the existing experimental literature within three domains: 1) auctions for farming land; 2) rental contracts between landowner and farmer; 3) dynamic investment decisions (based on the real options approach). Our paradigm is bounded rationality. We plan to start with deriving rational benchmark predictions. We will also derive behavioral predictions for the investigated decision situations of farmers mainly based on behavioral decision and game theories. Both predictions are then tested in economic experiments.