Consider a specific empirical context, let us imagine Pisco, Peru, where we imagine two alternative contracts being offered.  One contract being linear, the latter being lump sum.  Demand estimates can be determined to predict insurance demand through expected utility and cumulative prospect theories.  However, which theory is the most consistent for farmers when preference parameters are considered? 

This presentation is based on the AMA Innovation Lab projects for an I4 technical meeting in Rome, Italy. This conference brought together researchers and stakeholders of involved in the global initiative towards Index Insurance.

This presentation took place at Rome, Italy on June 13, 2012.