@article{Musshoff:51545,
      recid = {51545},
      author = {Musshoff, Oliver and Hirschauer, Norbert and Wassmuss,  Harm},
      title = {The Role of Bounded Rationality in Farm Financing  Decisions – First Empirical Evidence –},
      address = {2009},
      number = {1005-2016-79130},
      series = {Contributed Paper},
      pages = {17},
      year = {2009},
      abstract = {Farmers do not often change from their house bank to  another bank, even if the competing banks offer better  conditions. This “reluctance to switch” can be explained,  on the one hand, by the transaction costs resulting from  such a change of business relation. On the other hand, it  may be the result of bounded rationality. The results of a  survey of North German farmers show that they are indeed  bounded rational borrowers. They greatly underestimate the  monetary disadvantages which are caused by the higher  interest rates for loans from their house bank. In other  words: They do not switch bank even if their individually  perceived transaction costs are already “covered” by the  lower interest rates of the alternative loan offer.},
      url = {http://ageconsearch.umn.edu/record/51545},
      doi = {https://doi.org/10.22004/ag.econ.51545},
}