Premium
THE OPTIMAL CHOICE OF A VARIETY OF A SPECIES FOR VARIABLE ENVIRONMENTAL CONDITIONS
Author(s) -
Tisdell Clem
Publication year - 1983
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.1983.tb00987.x
Subject(s) - yield (engineering) , variety (cybernetics) , econometrics , quadratic equation , variable (mathematics) , mathematics , concave function , function (biology) , statistics , economics , regular polygon , biology , mathematical analysis , materials science , geometry , evolutionary biology , metallurgy
When yields of a variety are a non‐linear function of a relevant environmental condition, variability of this condition affects the average level of yields, and may favour one variety in comparison to another. When the yield function is strictly concave (exhibits diminishing marginal yield as a function of the environmental condition), heightened environmental variability increases the likelihood of the variety with the smallest change in marginal yield, the more tolerant one, maximising yield on average. However, if the yield function is strictly convex (increasing marginal yields are the case) increased environmental variability raises the likelihood of the variety with the greatest change in marginal yield, the less tolerant one, maximising yields on average. Examples are given, and simple rules are stated for choosing the variety that maximises average yields when yield functions are quadratic. The analysis can be adapted to decision‐making in which average profit or expected utility, rather than average yield, is to be maximised.