1.

Explain why a farmer may adopt a new technology earlier if he or she has to learn-by-doing compared to the case where he or she can learn from others. If the farmer has to learn-by-doing (Rely on their own experience) ,when the process of learning by doing is complete than, new technology is more effective rather than rely on their own experience. Therefore swicht to new technology will be more effective. On the other hand, If they can learn from others, they will be observed wether the new experience would gain higher return rather than using a new technology. If it is true, than they will choose to use the new experience, but if new experience does not yield higher return, they than choose to adopt new technology.

2. They perform a simulation of the effect of learning on profitability per hectare under various assuptions about adoption and learning and a simulation of HYV adoption under various assuptions about the initial assets held by a farmer and his neighbors. Figure 1 shows that if the farmer use traditional varieties they will get the same profit over the period. On the other hand, if they use HYV varieties, they will get increasing profit over time but the dimishing profit over time. Figure 2 shows that