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

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  • Murray-Prior, Roy B.
  • Wright, Vic
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    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.

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    Bibliographic Info

    Article provided by Australian Agricultural and Resource Economics Society in its journal Australian Journal of Agricultural and Resource Economics.

    Volume (Year): 45 (2001)
    Issue (Month): 4 (December)
    Pages:

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    Handle: RePEc:ags:aareaj:117729

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    Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200
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    Related research

    Keywords: Farm Management; Risk and Uncertainty;

    References

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    Cited by:
    1. Kim, Jong-Sun & Cameron, Donald, 2013. "Typology of farm management decision-making research," International Journal of Agricultural Management, Institute of Agricultural Management;International Farm Management Association, vol. 2(2), January.

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