Flat Earth Economics: The Far-reaching Consequences of Flat Payoff Functions in Economic Decision Making
Economists tend to emphasize the optimum, but in many cases, even large deviations from optimal decisions make little difference to the payoff. This has far-reaching implications that are under-recognized, including: (a) decision makers often have a wide margin for error in their production planning decisions, and flexibility to pursue factors not considered in the calculation of payoffs; (b) optimizing techniques are sometimes of limited practical relevance for decision support; (c) the value of information used to refine management decisions is often low; and (d) the benefits of using “precision farming” technologies to adjust production input levels are often low. Copyright 2006, Oxford University Press.
Volume (Year): 28 (2006)
Issue (Month): 4 ()
|Contact details of provider:|| Postal: |
Phone: (414) 918-3190
Fax: 01865 267 985
Web page: http://www.aaea.org/
More information through EDIRC
|Order Information:||Web: http://www.oup.co.uk/journals|
When requesting a correction, please mention this item's handle: RePEc:oup:revage:v:28:y:2006:i:4:p:553-566. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.