Abstract
This chapter includes a formal definition of the decision problem under uncertainty and the concepts involved.
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- 1.
Figure 6.1 includes only one output. With more (m) outputs the production is described in the form of an S×m matrix Z where the elements \( z_{s}^{j} \) are production of output j in state s. Output prices are, correspondingly, in the form of an S×m matrix of output prices \( p_{s}^{j} \).
Reference
Rasmussen, S. (2006). Optimizing production under uncertainty. Generalization of the state-contingent approach and comparison with the EV model. FOI Working Papers no. 5/2006, Institute of food and resource economics. The Royal Veterinary and Agricultural University, Copenhagen.
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© 2011 Svend Rasmussen
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Rasmussen, S. (2011). Formulation of the Decision Problem. In: Optimisation of Production Under Uncertainty. SpringerBriefs in Economics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-21686-2_6
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DOI: https://doi.org/10.1007/978-3-642-21686-2_6
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