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Decision Modeling and Behavior in Complex and Uncertain Environments pp 57–76Cite as

Agricultural Decision Making in the Argentine Pampas: Modeling the Interaction between Uncertain and Complex Environments and Heterogeneous and Complex Decision Makers

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Part of the book series: Springer Optimization and Its Applications ((SOIA,volume 21))

Simulated outcomes of agricultural production decisions in the Argentine Pampas were used to examine “optimal” land allocations among different crops identified by maximization of the objective functions associated with expected utility and prospect theories. We propose a more mathematically tractable formulation for the prospect theory value-function maximization, and explore results for a broad parameter space. Optimal actions differ among some objective functions and parameter values, especially for land tenants, whose enterprise allocation is less constrained by rotations. Our results demonstrate in a nonlaboratory decision context that psychologically plausible deviations from EU maximization matter.

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Author information

Authors and Affiliations

  1. Rosenstiel School of Marine and Atmospheric Science, University of Miami, USA

    Guillermo Podestá & David Letson

  2. Department of Psychology and Graduate School of Business, Columbia University, USA

    Elke U. Weber

  3. Facultad de Ingenieríia, University of Buenos Aires, Argentina

    Carlos Laciana

  4. Facultad de Agronomíia, University of Buenos Aires, Argentina

    Federico Bert

Authors
  1. Guillermo Podestá
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  2. Elke U. Weber
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  3. Carlos Laciana
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  4. Federico Bert
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  5. David Letson
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Editor information

Editors and Affiliations

  1. Management and Organizations, University of Arizona, 85721, Tucson, AZ, USA

    Tamar Kugler

  2. Dept. Industrial & Systems Engineering, University of Florida, 303 Weil Hall, 32611-6595, Gainesville, FL, USA

    J. Cole Smith

  3. Eller College of Management, University of Arizona, 1130 E. Helen St, 85721, Tucson, AZ, USA

    Terry Connolly

  4. College of Engineering Dept. Systems & Industrial Engineering, University of Arizona, 1127 E. James E. Rogers Way, 85721-0020, Tucson, AZ, USA

    Young-Jun Son

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Podestá, G., Weber, E.U., Laciana, C., Bert, F., Letson, D. (2008). Agricultural Decision Making in the Argentine Pampas: Modeling the Interaction between Uncertain and Complex Environments and Heterogeneous and Complex Decision Makers. In: Kugler, T., Smith, J.C., Connolly, T., Son, YJ. (eds) Decision Modeling and Behavior in Complex and Uncertain Environments. Springer Optimization and Its Applications, vol 21. Springer, New York, NY. https://doi.org/10.1007/978-0-387-77131-1_3

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