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

  • Murray-Prior, Roy B.
  • Wright, Vic
Registered author(s):

    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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    File URL: http://purl.umn.edu/117729
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    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
    Contact details of provider: Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200
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