Risk Attitudes and Resilience of Trading Networks : Evidence from Smallholders in Vietnam

This study explores the interplay between risk attitudes and trading network resilience of trading networks in small-scale rural farming communities in Vietnam. Leveraging survey data from farming households across three villages characterized by limited network resilience, we uncover evidence of a positive association between risk aversion and the number of engaged traders, while loss aversion exhibits a negative relationship. Conversely, in villages with fewer traders, we observe a positive correlation between procrastination and the number of trading links. These findings highlight the complex dynamics between behavioral factors and trading network resilience, underscoring the importance of considering village-specific dynamics when devising strategies to enhance network resilience in rural farming communities