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Using a decision theoretic approach to choose among alternative import protocols for an import competing commodity

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  • Abdalla, Ali
  • Rodriguez, Gil
  • Heaney, Anna

Abstract

The global push toward free trade and the consequent rise in volume of imports from a wider range of countries incurs the likelihood of introducing unwanted pathogens. Given that a zero-risk quarantine policy is not possible, there are tradeoffs between the gains from international trade and the potential costs to society of disease incursions. The aim in this paper is to demonstrate a means for choosing among alternative import protocols through an economic model. The economic modeling approach applied to a stylised set of import protocols was a two step process. First, the gains and losses to consumers and producers, including costs of disease, were estimated for each import protocol. In the second step, three decision rules — minimax, minimin and minimax regret — were applied to a cost matrix to determine the most efficient import protocol.

Suggested Citation

  • Abdalla, Ali & Rodriguez, Gil & Heaney, Anna, 1999. "Using a decision theoretic approach to choose among alternative import protocols for an import competing commodity," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 123752, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare99:123752
    DOI: 10.22004/ag.econ.123752
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    References listed on IDEAS

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    1. John Mclnerney, 1996. "Old Economics For New Problems ‐Livestock Disease: Presidential Address," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1‐4), pages 295-314, January.
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