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Choice of Utility Functional Form: Its Effect on Classification of Risk Preferences and the Prediction of Farmer Decisions

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  • Zuhair, Segu M. M.
  • Taylor, Daniel B.
  • Kramer, Randall A.

Abstract

Subjective utility values were elicited from Sri Lankan producers of minor export crops. Exponential, quadratic, and cubic utility functions were estimated. The choice of functional form was found to affect both the classification of risk attitudes and the prediction of harvesting strategy.

Suggested Citation

  • Zuhair, Segu M. M. & Taylor, Daniel B. & Kramer, Randall A., "undated". "Choice of Utility Functional Form: Its Effect on Classification of Risk Preferences and the Prediction of Farmer Decisions," 1987 Annual Meeting, August 2-5, East Lansing, Michigan 270141, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea87:270141
    DOI: 10.22004/ag.econ.270141
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    1. repec:ags:agsaem:288652 is not listed on IDEAS
    2. H. M. G. Herath & J. Brian Hardaker & Jock R. Anderson, 1982. "Choice of Varieties by Sri Lanka Rice Farmers: Comparing Alternative Decision Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(1), pages 87-93.
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    6. William Lin & G. W. Dean & C. V. Moore, 1974. "An Empirical Test of Utility vs. Profit Maximization in Agricultural Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(3), pages 497-508.
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    9. Torkamani, Javad, 2006. "Measuring and Incorporating Farmers’ Personal Beliefs and Preferences about Uncertain Events in Decision Analysis: A Stochastic Programming Experiment," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 61(2), pages 1-15.

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