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Choice of Varieties by Sri Lanka Rice Farmers: Comparing Alternative Decision Models
Author(s) -
Herath H. M. G.,
Hardaker J. Brian,
Anderson Jock R.
Publication year - 1982
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 - 10.2307/1241176
Subject(s) - profit maximization , utility maximization , maximization , sri lanka , profit (economics) , economics , microeconomics , mathematical economics , socioeconomics , tanzania
Sri Lanka rice farmers are faced with a choice between traditional and high‐yielding rice varieties. Three risky‐choice models are compared to explain producer behavior. Forty farmers with typically small rice areas were studied. Choice criteria compared were multiple (two)‐attribute utility maximization, single (profit)‐attribute utility maximization, and expected profit maximization. Expected utility maximization performed better than expected profit maximization: single‐attribute utility maximization outperformed the more complex multiattribute utility model. The importance of careful elicitation of subjective probability distributions is emphasized. Rice farmers appear to allocate their land between available technologies in an economically rational way.