Abstract
This paper develops an approach to deal with risk in agricultural decisions. Although the model is in line with the “Prospect ranking theory” and the “Partitioned multiobjective risk method”, which recognise the multidimensional character of any risk measure taken in agricultural decision‐making problems, its behavioural hypothesis and analytical development are totally different. The way in which the approach works is illustrated through a simple but well‐known example in agricultural planning.
Similar content being viewed by others
References
G.B.C. Backus, V.R. Eidman V.R. and A. A.Dijkhuizen, Farm decision making under risk uncer-tainty, Netherlands J. Agr. Sci. 45 (1997) 307-328.
E. Ballestero and C. Romero, A theorem connecting utility function optimization and compromise programming, Opns. Res. Letters 10 (1991) 421-427.
E. Ballestero and C. Romero, Portfolio selection: A compromise programming solution, J. Oper. Res. Society 47 (1996) 1377-1386.
F. Blasco, E. Cuchillo-Ibáñez, M.A. Morón and C. Romero, On the monotonicity of the compromise set in multicriteria problems, J. Opt. Theory and Applications 102 (1999) 69-82.
S.T. Buccola, Testing for nonnormality in farm net returns, Am. J. Agric. Econ. 68 (1986) 334-343.
J.L. Cohon, Multiobjective Programming and Planning (Academic Press, New York, 1978).
G. Colson and M. Zeleny, Uncertain Prospects Ranking and Portfolio Analysis under the Conditions of Partial Information (Verlag Anton Hain, Meisenheim, 1979).
G. Colson and M. Zeleny, Multicriterion concept of risk under incomplete information, Comp. Opns. Res. 7 (1980) 125-143.
R.J. Freund, The introduction of risk into a programming model, Econometrica 32 (1956) 112-136.
Y. Y. Haimes, Risk Modeling Assessment and Management (Wiley, New York, 1998).
P.B.R. Hazell, A linear alternative to quadratic and semivariance programming for farm planning under uncertainty, Am. J. Agric. Econ. 53 (1971) 53-62.
H.M. Markowitz, Portfolio selection, J. Finance 7 (1952) 77-91.
M.A. Morón, C. Romero and F.R. Ruiz del Portal, Generating well-behaved utility functions for compromise programming, J. Opt. Theory and Applications 91 (1996) 643-649.
C. Romero and T. Rehman, Multiple Criteria Analysis for Agricultural Decisions (Elsevier, Amsterdam, 1989).
R.E. Steuer, Random problem generation and the computation of efficient extreme points in multiple objective linear programming, Comput. Opt. Applic. 3 (1994) 333-347.
P.L. Yu, A class of solutions for group decision problems, Mgmt. Sci. 19 (1973) 936-946.
P.L. Yu, Multiple-Criteria Decision Making. Concepts, Techniques and Extensions (Plenum Press, New York, 1985).
M. Zeleny, A concept of compromise solutions and the method of the displaced ideal, Comp. Opns. Res. 1 (1974) 479-496.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Romero, C. Risk programming for agricultural resource allocation: A multidimensional risk approach. Annals of Operations Research 94, 57–68 (2000). https://doi.org/10.1023/A:1018985620677
Issue Date:
DOI: https://doi.org/10.1023/A:1018985620677