In this study, AMA Innovation Lab researchers play a series of incentivized laboratory games with risk-exposed cooperative-based coffee farmers in Guatemala to understand the demand for index-based rainfall insurance.
This presentation took place in University of California Davis, United States describing experimental games trying to better understand demand for incomplete insurance in Guatemala.
Though widely heralded, this effort to create rents in an otherwise competitive market is unlikely to succeed. By analyzing two ways in which the mechanism is undermined by arbitrage: over-certification and quality-invariant pricing.
