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An Expository Review of Bernoullian Decision Theory in Agriculture: Is Utility Futility?

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  • Dillon, John L.

Abstract

An outline and appraisal is given of Bernoullian decision theory with a view to its potential use in agricultural contexts, both on and off the farm. Despite the existence of a variety of difficulties and unresolved problems, it is argued that Bernoulli's Principle--because of its recognition of the personal nature of decision making in terms of beliefs and preferences--represents the best possible approach to risky choice in agriculture.

Suggested Citation

  • Dillon, John L., 1971. "An Expository Review of Bernoullian Decision Theory in Agriculture: Is Utility Futility?," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(01), pages 1-78, March.
    • Handle: RePEc:ags:remaae:9670
    DOI: 10.22004/ag.econ.9670
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    References listed on IDEAS

    as
    1. Adler, Michael, 1969. "On the Risk-Return Trade-off in the Valuation of Assetsâ€," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 4(4), pages 493-512, December.
    2. N. H. Agnew & R. A. Agnew & J. Rasmussen & K. R. Smith, 1969. "An Application of Chance Constrained Programming to Portfolio Selection in a Casualty Insurance Firm," Management Science, INFORMS, vol. 15(10), pages 512-520, June.
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    Keywords

    Risk and Uncertainty;

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