Attitudes toward risk were measured in 140 households using two methods: an interview method eliciting certainty equivalents and an experimental gambling approach with real payoffs which, at their maximum, exceeded monthly incomes of unskilled laborers. The interview method is subject to interviewer bias and its results were totally inconsistent with the experimental measures of risk aversion. Experimental measures indicate that, at high payoff levels. v-irtually all individuals are moderately risk-averse with little variation according to personal characteristics. Wealth tends to reduce risk aversion slightly, but its effect is not statistically significant.

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Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission. JSTOR is a not-for-profit organization founded in 1995 to build trusted digital archives for scholarship. We work with the scholarly community to preserve their work and the materials they rely upon, and to build a common research platform that promotes the discovery and use of these resources. For more information about JSTOR, please contact support@jstor.org. Royal Economic Society and Blackwell Publishing are collaborating with JSTOR to digitize, preserve and extend access to The Economic Journal. http://www.jstor.org * The experiment on which this paper is based was carried out as part of a wider research programme of the International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) on the role of risk in agriculture and with ICRISAT's generous support. The author would like to thank B. C. Barah,

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