An alternative method for computing stochastically efficient mixtures of risky alternatives

Francis P. McCamley and James B. Kliebenstein

No 291710, WAEA/ WFEA Conference Archive (1929-1995) from Western Agricultural Economics Association

Abstract: Tauer's Target MOTAD model can be used to compute stochastically efficient mixtures of risky alternatives. The paper presents an alternative method which is more consistent with accepted views of the relationship between income and marginal utility. Unique solutions belong to the set of third degree stochastic dominance efficient mixtures. The method is illustrated using example data from Anderson, Dillon and Hardaker. For their example, the method in this paper yields less diverse crop mixtures than Target MOTAD does.

Keywords: Research and Development/Tech Change/Emerging Technologies; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 19
Date: 1984-07-08
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ageconsearch.umn.edu/record/291710/files/WAEA-0173.PDF (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:waeaar:291710

DOI: 10.22004/ag.econ.291710

Access Statistics for this paper

More papers in WAEA/ WFEA Conference Archive (1929-1995) from Western Agricultural Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().