Files
Abstract
Forest management decisions can be seen as economic choices. The assumption of rational and
economically optimal choices frequently fails in family forestry, in which various multiple-use
motivations as well as legacy and sentimental values shape landowners’ decisions. Moreover,
scarcity of time and information as well as the imperfection of individuals’ cognitive abilities
result in bounded rationality. Pingle and Day (1996) illustrated six modes of economizing
behavior as decision-makers’ pragmatic responses to the limits of rationality: trial and error,
imitation, following an authority, habit, thoughtless impulse, and hunch. This presentation
argues that among these, following an authority, imitation and habit are the most common ones
in family forest owners’ decision making. Recent interview and survey datasets from Finland
provide evidence on the economizing decision-making logic and frequency of related decisionmaking
strategies among family forest owners. Trusting forest professionals, thus delegating
decision-making power is the prevalent strategy for approximately one fifth of owners.
Meanwhile, two fifths of owners want to learn from authorities and outcomes of comparable
previous actions. Asking for peer advice and learning from other owners’ experiences reflects a
mix of imitation and learning from authority. In turn, many owners tend to build their own
decision rules to make forestry decisions easier and approach the habit type of choice behavior.
These findings indicate that the quality of advice and forest management guidelines have rather
direct impact on the quality of forest owners’ decisions. When public funding for forestry
advisory continues to decline and the significance of peer advice via social media and traditional
communication channels increases, free-of-charge economizing behavior may become more
complex. This may increase the need for market services that particularly focus on facilitating
the ease of forest ownership. Lack of suitable authorities or role models may lead to bad
decisions or indecisive and thus passive owners.