IDEAS home Printed from https://ideas.repec.org/a/ags/wjagec/32326.html
   My bibliography  Save this article

Potential Pitfalls In Renewable Resource Decision Making That Utilizes Convex Combinations Of Discrete Alternatives

Author

Listed:
  • Hof, John G.
  • Marose, Robin K.
  • King, David A.

Abstract

Decision makers in renewable resource planning are often unable to specify their objective function a priori, and are presented with a discrete set of alternatives reflecting a range of options that are actually much more continuous. It is common for the decision maker to be interested in some other alternative than those originally developed. An iterative process thus often takes place between decision maker an analyst as they search for a satisfactory alternative. This paper analyzes the economic tenability of simply interpolating (taking convex combinations of) initial alternatives to generate new alternatives in this process. It is shown that convex combinations of outputs will be producible (feasible) with the interpolated input levels, under very common conditions. In fact, the cost estimate resulting from interpolating the cost of two (or more) alternatives will generally be an overestimate. The magnitude of this overestimate is investigated in a test case. It is concluded that this cost overestimate can be rather large, and is not systematically predictable. Only when the output sets in the original alternatives are very similar are the interpolated cost estimates fairly accurate.

Suggested Citation

  • Hof, John G. & Marose, Robin K. & King, David A., 1985. "Potential Pitfalls In Renewable Resource Decision Making That Utilizes Convex Combinations Of Discrete Alternatives," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 10(2), pages 1-10, December.
    • Handle: RePEc:ags:wjagec:32326
    DOI: 10.22004/ag.econ.32326
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/32326/files/10020391.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.32326?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Quirino Paris, 1981. "Multiple Optimal Solutions in Linear Programming Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(4), pages 724-727.
    2. Wilfred Candler & Michael Boehlje, 1971. "Use of Linear Programming in Capital Budgeting with Multiple Goals," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(2), pages 325-330.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. K D Cocks & J R Ive & J R Davis & I A Baird, 1983. "SIRO-PLAN and LUPLAN: An Australian Approach to Land-Use Planning. 1. The SIRO-PLAN Land-Use Planning Method," Environment and Planning B, , vol. 10(3), pages 331-345, September.
    2. Barbati, M. & Figueira, J.R. & Greco, S. & Ishizaka, A. & Panaro, S., 2023. "A multiple criteria methodology for priority based portfolio selection," Socio-Economic Planning Sciences, Elsevier, vol. 88(C).
    3. Just, Richard E., 2000. "Some Guiding Principles for Empirical Production Research in Agriculture," Agricultural and Resource Economics Review, Cambridge University Press, vol. 29(2), pages 138-158, October.
    4. Mohsen Khodakarami & Amir Shabani & Reza Farzipoor Saen, 2016. "Concurrent estimation of efficiency, effectiveness and returns to scale," International Journal of Systems Science, Taylor & Francis Journals, vol. 47(5), pages 1202-1220, April.
    5. McCarl, Bruce A. & Apland, Jeffrey, 1986. "Validation Of Linear Programming Models," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 18(2), pages 1-10, December.
    6. Walker, Odell L. & Nelson, A. Gene, 1980. "Dealing With Risks In The Management Agricultural Firms: An Extension/Teaching Viewpoint," Risk Analysis in Agriculture: Research and Educational Developments, January 16-18, 1980, Tucson, Arizona 271561, Regional Research Projects > W-149: An Economic Evaluation of Managing Market Risks in Agriculture.
    7. Patrick, George F. & Blake, Brian F., 1980. "Measurement And Modeling Of Farmers' Goals: An Evaluation And Suggestions," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 12(1), pages 1-6, July.
    8. Drynan, Ross G., 1986. "On Resolving Multiple Optima in Linear Programming," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 54(02), pages 1-5, August.
    9. Saygideger, Orhan, 1977. "Analysis of interaction between soil conservation and agricultural production in the United States using a multigoal linear programming model," ISU General Staff Papers 197701010800007040, Iowa State University, Department of Economics.
    10. D'Souza, Gerard E. & Smith, Dennis K. & Romero, Rafael F., 1988. "An Economic Analysis Of Alternative Beef-Cattle Grazing Systems," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270324, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Paris, Quirino, 1983. "Multiple Optimal Solutions In Quadratic Programming Models," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 8(2), pages 1-14, December.
    12. Quirino Paris & Sophie S. Drogue & Giovanni Anania, 2009. "Calibrating mathematical programming spatial models [Calibrage pour les modèles spatiaux de programmation mathématique]," Post-Print hal-02754337, HAL.
    13. Paris, Quirino, 1982. "Multiple Solutions In Complementarity Problems," Working Papers 225702, University of California, Davis, Department of Agricultural and Resource Economics.
    14. Zhu, Erqian Julia & Kim, Man-Keun & Harris, Thomas R., 2009. "Input-Output Analysis, Linear Programming and Modified Multipliers," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46716, Southern Agricultural Economics Association.
    15. Just, Richard E., 2003. "Risk research in agricultural economics: opportunities and challenges for the next twenty-five years," Agricultural Systems, Elsevier, vol. 75(2-3), pages 123-159.

    More about this item

    Keywords

    Resource /Energy Economics and Policy;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:wjagec:32326. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/waeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.