Modeling at farm level: Positive Multi-Attribute Utility Programming

José A. Gómez-Limón, Carlos Gutiérrez-Martín and Laura Riesgo

Omega, 2016, vol. 65, issue C, 17-27

Abstract: This article proposes a new mathematical programming model for the simulation of farmers׳ decision-making. We have developed a model based on a multi-attribute utility approach that takes into consideration the most relevant attributes of farmers within a positive framework. This approach overcomes the limitations found in some mathematical models used in the literature to simulate farmers׳ behavior. A five-step procedure is presented in order to elicit the utility function that reproduces farmers׳ current decision-making. We illustrate this positive multi-attribute approach using a sample of farmers in an irrigated area in southern Spain, where our simulations demonstrate the accurateness of the model in reproducing actual farmers׳ decision-making. We also find evidence that the model is able to explain the heterogeneous behavior of farmers within a homogeneous agricultural system.

Keywords: Decision making; Farmers׳ behavior; Multicriteria; Mathematical programming; Simulation; Positive approach (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jomega:v:65:y:2016:i:c:p:17-27

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DOI: 10.1016/j.omega.2015.12.004

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