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The Value Of Public Information For Microeconomic Production Decisions

Author

Listed:
  • Preckel, Paul V.
  • Loehman, Edna T.
  • Kaylen, Michael S.

Abstract

Procedures are needed to evaluate the benefits of the provision of information. This paper shows how to apply a money metric definition of the value of information for this purpose. The application is to microeconomic input choices for agricultural production, and the information to be valued concerns the effect of fertilization on sorghum yield. In this paper application both output price and output level are stochastic, and the probability distribution of output is affected by the chosen level of fertilizer.

Suggested Citation

  • Preckel, Paul V. & Loehman, Edna T. & Kaylen, Michael S., 1987. "The Value Of Public Information For Microeconomic Production Decisions," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 12(2), pages 1-5, December.
    • Handle: RePEc:ags:wjagec:32228
    DOI: 10.22004/ag.econ.32228
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    References listed on IDEAS

    as
    1. Gould, John P., 1974. "Risk, stochastic preference, and the value of information," Journal of Economic Theory, Elsevier, vol. 8(1), pages 64-84, May.
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    Crop Production/Industries;

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