Willingness to pay for agricultural yield insurance is affected by starting point bias

Approach to agriculture risk management has extended in the EU and the possibilities of public support for yield risk management have increased. Crop insurance products are supported in EU’s Common Agricultural policy (CAP). The problem in policymaking is finding the balance between crop insurance supply and demand, because adequate data on farm-specific yield density functions are rarely available. We used a choice experiment (CE)to evaluate the willingness of farmers to buy crop insurance products. Demand for crop insurances was revealed, but we found that farmers anchor their willingness to pay for crop insurances to the price levels introduced