Influence of strategies and heuristics on farmers’ response to change under uncertainty

Roy B. Murray-Prior and Vic Wright

Australian Journal of Agricultural and Resource Economics, 2001, vol. 45, issue 4, 26

Abstract: Hierarchical Decision Models of woolproducers’ decisions provide unique insights into the impact of major price changes. Producers’ lagged response in some contexts appear to be due to the ambiguous decision environment they face, their strategic goals and responses to that environment apart from lags caused by factors such as attitude to risk, expectations adjustment, adjustment costs and learning costs. Much of the response to major price changes comes from strategic decisions to change enterprises rather than marginal changes to existing enterprises. In ambiguous environments, methods may need to be found that incorporate simplifying behavioral rules and strategies.

Keywords: Farm Management; Risk and Uncertainty (search for similar items in EconPapers)
Date: 2001
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aareaj:117729

DOI: 10.22004/ag.econ.117729

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