@article{Meiring:267326, recid = {267326}, author = {Meiring, J. A. and Oosthuizen, L. K.}, title = {DIE KEUSE VAN RISIKO-DOELTREFFENDE SPILPUNTBELEGGINGSTRATEGIEE MET BEHULP VAN STOGASTIESE DOMINANSIEKRITERIA}, journal = {Agrekon}, address = {1990-12}, number = {346-2018-487}, year = {1990}, abstract = {Risk-efficient centre pivot investment strategies can be selected by taking into account both cumulative probability distributions of the estimated after-tax income from alternative centre pivot investments and the producer's preferences. Ordinary and generalized stochastic dominance criteria are used as decision-making criteria. Eighteen typical centre pivot systems were identified on the basis of differences in capacity, size, pumping height and soil type. The estimated net present values for a wheat/maize/cotton rotation crop system were calculated for each investment by taking production and price risks into consideration. Stochastic dominance criteria facilitate the selection of the risk-efficient strategies that will be preferred by different decision-makers, on the basis of the total probability distributions of outcomes. In most cases stochastic dominance of the first degree gives a single strategy which is dominant. Only by using the generalized stochastic dominance criterion can investment strategies be placed in order of preference. However, in this case decision-makers with varying degrees of risk-sensitivity do not differ in respect of centre pivot investment strategics that would satisfy their spesific preferences.}, url = {http://ageconsearch.umn.edu/record/267326}, doi = {https://doi.org/10.22004/ag.econ.267326}, }