Protocol of implementing behavioral experiments for fruit tree marketing options in Rwanda: An experiment on risk preferences

The objectives of this study are (1) to elicit trust, risk and time preferences of smallholder fruit tree farmers in eastern Rwanda using monetary incentivized experiments, and (2) to investigate key attributes or features of marketing contracts that are preferred by farmers using a discrete choice experiment (DCE). We investigate farmer preferences related to six hypothetical marketing contract attributes: sales mode, timing of payment, input/service provision, form of contract, relation to the buyer, and investment costs. To demonstrate the relation between trust, risk and time preferences and the adoption of marketing contracts, we couple these experimental data with the results from the DCE about farmers’ preferences for marketing contract attributes. We estimate a random parameters logit model, including interaction terms between contract attributes and behavioral preferences, to disentangle preference heterogeneity. Disentangling these behavioral preferences can give interesting insights on how contracts should be designed in order to meet farmers’ preferences. The results can also provide guidance for the fruit marketing development to ensure that smallholder farmers benefit from the full potential of their fruit trees.

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