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Measuring Farmers' Trade‐Offs between Expected Income and Focus‐Loss Income
Author(s) -
Webster J. P. G.,
Kennedy J. O. S.
Publication year - 1975
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1238845
Subject(s) - focus (optics) , economics , function (biology) , set (abstract data type) , microeconomics , computer science , physics , evolutionary biology , optics , biology , programming language
Abstract Farmers' attitudes to risk are viewed within a focus‐loss framework. Sets of indifference curves are constructed for five farmers who are willing to forgo expected income for increases in a probabilisticly defined minimum income. Each set of curves is compared with the respective farmer's utility function as derived by the modified von Neumann‐Morgenstern method.