A behavior analysis of brazilian farmers based on sunk cost effects and prospect theory
Purpose: identify whether the sunk cost effect is one of the reasons that make banana producers in Espírito Santo, a Brazilian state, make decisions that involve returning home with unsold production. Methodology/Approach: It is an exploratory and descriptive study of multiple cases. The object o...
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| Format: | Article |
| Language: | Portuguese |
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Centro Federal de Educação Tecnológica Celso Suckow da Fonseca
2020-11-01
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| Series: | Revista Produção e Desenvolvimento |
| Subjects: | |
| Online Access: | https://revistas.cefet-rj.br/index.php/producaoedesenvolvimento/article/view/473 |
| _version_ | 1818721522709168128 |
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| author | Denizar Leal Daniely Tranhago de Queiroz Roberta Araújo Rodrigues |
| author_facet | Denizar Leal Daniely Tranhago de Queiroz Roberta Araújo Rodrigues |
| author_sort | Denizar Leal |
| collection | DOAJ |
| description | Purpose: identify whether the sunk cost effect is one of the reasons that make banana producers in Espírito Santo, a Brazilian state, make decisions that involve returning home with unsold production.
Methodology/Approach: It is an exploratory and descriptive study of multiple cases. The object of study was 17 banana producers from Espírito Santo, who sell their products in Supply Centers of Espírito Santo (CEASA). Data collection was carried out through interviews
Findings: The results found demonstrate that producers are reluctant to sell below cost price, noting that there is an influence of sunk costs in their decisions. Another finding is that the fear of loss, which is one of the pillars of the Prospect Theory, also influences the decisions of producers, in the sense of trying to avoid future losses
Research Limitation: the methodology used does not allow inferences about the behavior of all producers.
Originality/Value of paper: This study confirms that knowledge of costs in the decision-making process is fundamental in any business, since if producers were not influenced by the sunk cost effect, they would probably have better results in this activity. |
| first_indexed | 2024-12-17T20:40:04Z |
| format | Article |
| id | doaj.art-5ad53133a5804d3e886b14ed842b68d8 |
| institution | Directory Open Access Journal |
| issn | 2446-9580 |
| language | Portuguese |
| last_indexed | 2024-12-17T20:40:04Z |
| publishDate | 2020-11-01 |
| publisher | Centro Federal de Educação Tecnológica Celso Suckow da Fonseca |
| record_format | Article |
| series | Revista Produção e Desenvolvimento |
| spelling | doaj.art-5ad53133a5804d3e886b14ed842b68d82022-12-21T21:33:19ZporCentro Federal de Educação Tecnológica Celso Suckow da FonsecaRevista Produção e Desenvolvimento2446-95802020-11-01610.32358/rpd.2020.v6.473473A behavior analysis of brazilian farmers based on sunk cost effects and prospect theoryDenizar Leal0Daniely Tranhago de Queiroz1Roberta Araújo Rodrigues2Universidade Federal do Espírito SantoUniversidade Federal do Espírito SantoUniversidade Federal do Espírito SantoPurpose: identify whether the sunk cost effect is one of the reasons that make banana producers in Espírito Santo, a Brazilian state, make decisions that involve returning home with unsold production. Methodology/Approach: It is an exploratory and descriptive study of multiple cases. The object of study was 17 banana producers from Espírito Santo, who sell their products in Supply Centers of Espírito Santo (CEASA). Data collection was carried out through interviews Findings: The results found demonstrate that producers are reluctant to sell below cost price, noting that there is an influence of sunk costs in their decisions. Another finding is that the fear of loss, which is one of the pillars of the Prospect Theory, also influences the decisions of producers, in the sense of trying to avoid future losses Research Limitation: the methodology used does not allow inferences about the behavior of all producers. Originality/Value of paper: This study confirms that knowledge of costs in the decision-making process is fundamental in any business, since if producers were not influenced by the sunk cost effect, they would probably have better results in this activity.https://revistas.cefet-rj.br/index.php/producaoedesenvolvimento/article/view/473escalation of commitmentsunk costfarmersprospect theoryfood waste |
| spellingShingle | Denizar Leal Daniely Tranhago de Queiroz Roberta Araújo Rodrigues A behavior analysis of brazilian farmers based on sunk cost effects and prospect theory Revista Produção e Desenvolvimento escalation of commitment sunk cost farmers prospect theory food waste |
| title | A behavior analysis of brazilian farmers based on sunk cost effects and prospect theory |
| title_full | A behavior analysis of brazilian farmers based on sunk cost effects and prospect theory |
| title_fullStr | A behavior analysis of brazilian farmers based on sunk cost effects and prospect theory |
| title_full_unstemmed | A behavior analysis of brazilian farmers based on sunk cost effects and prospect theory |
| title_short | A behavior analysis of brazilian farmers based on sunk cost effects and prospect theory |
| title_sort | behavior analysis of brazilian farmers based on sunk cost effects and prospect theory |
| topic | escalation of commitment sunk cost farmers prospect theory food waste |
| url | https://revistas.cefet-rj.br/index.php/producaoedesenvolvimento/article/view/473 |
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