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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

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.

Suggested Citation

  • Murray-Prior, Roy B. & Wright, Vic, 2001. "Influence of strategies and heuristics on farmers’ response to change under uncertainty," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(4), December.
  • Handle: RePEc:ags:aareaj:117729
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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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    Keywords

    Farm Management; Risk and Uncertainty;

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