Risk, Utility and the Value of Information in Farmer Decision Making
Derek R. Byerlee and
Jock Anderson ()
Review of Marketing and Agricultural Economics, 1982, vol. 50, issue 03
A model is developed from decision theory for evaluating probabilistic information, especially for decision makers who are risk averse. The value of information to such a decision maker is disaggregated into mean and variance effects. It is shown that the degree of risk aversion of the decision maker may have important effects on the value attached to the information; however, there is not necessarily a positive correlation between risk aversion and the value of information, since the decision to acquire new information is itself often a risky decision. The concepts and procedures are illustrated by application to a fodder conservation decision with rainfall forecast information.
Keywords: Farm Management; Risk and Uncertainty (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (13) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:ags:remaae:12524
Access Statistics for this article
Review of Marketing and Agricultural Economics is currently edited by December
More articles in Review of Marketing and Agricultural Economics from Australian Agricultural and Resource Economics Society
Contact information at EDIRC.
Series data maintained by AgEcon Search ().