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TREATMENT OF RISK IN A CROP PROTECTION INFORMATION SYSTEM
Author(s) -
Thornton P. K.
Publication year - 1985
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.1477-9552.1985.tb00166.x
Subject(s) - expected utility hypothesis , yield (engineering) , value of information , range (aeronautics) , value (mathematics) , crop , agricultural science , economics , business , risk analysis (engineering) , agricultural engineering , actuarial science , statistics , mathematics , agronomy , environmental science , engineering , biology , materials science , mathematical economics , metallurgy , aerospace engineering
The importance of risk in a farm‐level management information system designed to help farmers make spraying decisions relating to leaf rust of barley is examined. Using utility functions which were elicited for a small number of cereal growers, and probability distributions of yield losses generated using the information system, it was found that strategy assessment using the criterion of maximisation of expected monetary value or the criterion of maximisation of expected utility could be expected to lead to identical recommendations in most years, for a wide range of risk attitudes.