Factors affecting attitude towards risk: The case of small-scale fishers in Guimaras

Abstract

The presence of risk and uncertainty in the field of capture fisheries warrants an understanding of how small-scale fishers respond to these uncertainties. Previous studies showed that fishers’ decision-making process is influenced by various factors, including their risk preference. Studies on this subject are scarce despite the relative importance of risk preference in explaining small-scale fisher’s behavior. This study used a multiple price list experiment to elicit small-scale fisher’s risk preference in Guimaras province and employed multinomial logit regression to determine socioeconomic factors influencing risk preference. The results showed that small-scale fishers are slightly risk-averse given the mean Constant Relative Risk Aversion (CRRA) coefficient of 0.20. This risk-averse attitude is significantly influenced by monthly household income, being a Pantawid Pamilyang Pilipino Program (4P’s) beneficiary, and having outstanding credit. Therefore, the risk-averse attitude of small-scale fishers is an essential consideration in implementing fishery regulations and poverty alleviation programs.