Hans P. Binswanger's study measures attitudes toward risk in 240 households in semi-arid tropical India using two methods: an interview method and an experimental gambling approach. The experimental gambling method, which offers real payoffs, is found to be more reliable and consistent than the interview method, which is subject to interviewer bias. The experimental results indicate that at high payoff levels, individuals are generally moderately risk-averse, with little variation based on personal characteristics. Wealth slightly reduces risk aversion but does not have a statistically significant effect. The study suggests that differences in investment behavior among farmers facing similar technologies and risks are more likely due to differences in constraint sets, such as access to credit and marketing, rather than differences in risk attitudes.Hans P. Binswanger's study measures attitudes toward risk in 240 households in semi-arid tropical India using two methods: an interview method and an experimental gambling approach. The experimental gambling method, which offers real payoffs, is found to be more reliable and consistent than the interview method, which is subject to interviewer bias. The experimental results indicate that at high payoff levels, individuals are generally moderately risk-averse, with little variation based on personal characteristics. Wealth slightly reduces risk aversion but does not have a statistically significant effect. The study suggests that differences in investment behavior among farmers facing similar technologies and risks are more likely due to differences in constraint sets, such as access to credit and marketing, rather than differences in risk attitudes.