Influence of strategies and heuristics on farmers’ response to change under uncertainty

Hierarchical Decision Models of woolproducers’ decisions provide unique insights into the impact of major price changes. Producers’ lagged response in some contexts appear to be due to the ambiguous decision environment they face, their strategic goals and responses to that environment apart from lags caused by factors such as attitude to risk, expectations adjustment, adjustment costs and learning costs. Much of the response to major price changes comes from strategic decisions to change enterprises rather than marginal changes to existing enterprises. In ambiguous environments, methods may need to be found that incorporate simplifying behavioral rules and strategies.


Issue Date:
2001
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/117729
Published in:
Australian Journal of Agricultural and Resource Economics, Volume 45, Issue 4
Page range:
573-598
Total Pages:
26




 Record created 2017-04-01, last modified 2017-10-19

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)