The Role of area-yield crop insurance program face to the Mid-term Review of Common Agricultural Policy



used to represent the probability weighting function that should have the inverse-S-shape.

This work used the following function of two parameters:

cpα

f(p) =   α 4"----a

(6)


cpα + (1 - p)a

where:

f- probability weighting function;

p-probabilities;

γ - Parameter that represents the curvature; and,
δ - Parameter that represents an upward.

The graphic representation is as follows:

Figure 2 - Probability Weighting Function


Gonzalez and Wu affirm that this function allows to portray two behaviors of the decision
maker: (i) diminishing sensitivity; (ii) attractiveness. The property of diminishing
sensitivity presented by Tversky and Kahneman means that the people become less
sensitive to changes in probabilities as they move away from the reference point. In the
domain of the probabilities, the two endpoints 0 and 1 represent the reference points in
the sense that one represents the “certainty that it doesn't happen” and another represents



More intriguing information

1. Who runs the IFIs?
2. Putting Globalization and Concentration in the Agri-food Sector into Context
3. The name is absent
4. Plasmid-Encoded Multidrug Resistance of Salmonella typhi and some Enteric Bacteria in and around Kolkata, India: A Preliminary Study
5. AGRICULTURAL PRODUCERS' WILLINGNESS TO PAY FOR REAL-TIME MESOSCALE WEATHER INFORMATION
6. National curriculum assessment: how to make it better
7. The name is absent
8. Correlation Analysis of Financial Contagion: What One Should Know Before Running a Test
9. The Values and Character Dispositions of 14-16 Year Olds in the Hodge Hill Constituency
10. The name is absent