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Wait-and-see strategy pays off, incentives needed for risk takers

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Some people are quick to purchase the latest technology or sign up for a new service. Others adopt a wait-and-see strategy. A recent study by University of Illinois economist Hope Michelson, finds this is true for farmers in Nicaragua who enter into contracts with Walmart. The study is based on data Michelson collected from 400 farmers over eight years, beginning the year Walmart began buying produce in Nicaragua. The data include when farmers entered a relationship with Walmart and when they dropped out.

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