Hostname: page-component-848d4c4894-r5zm4 Total loading time: 0 Render date: 2024-07-07T11:23:14.749Z Has data issue: false hasContentIssue false
  • English
  • Français

Incorporating Multiple Goals into the Decision-Making Process: A Simulation Approach to Firm Growth Analysis*

Published online by Cambridge University Press:  28 April 2015

Roy E. Hatch ,
Wyatte L. Harman  and
Vernon R. Eidman
Roy E. Hatch
Affiliation:
National Economic Analysis Division and the Commodity Economics Division, respectively, of the Economic Research Service, U.S. Dept. of Agriculture, Stationed at Oklahoma State Universityand in Washington, D.C.
Wyatte L. Harman
Affiliation:
National Economic Analysis Division and the Commodity Economics Division, respectively, of the Economic Research Service, U.S. Dept. of Agriculture, Stationed at Oklahoma State Universityand in Washington, D.C.
Vernon R. Eidman
Affiliation:
Oklahoma State University
Get access Rights & Permissions [Opens in a new window]

Extract

Although the importance of multiple goals in the decision-making process has been recognized for years by economists, economic analyses typically are based on the assumption of maximization or minimization of a single goal. Some firm growth analyses have considered two or more goals by maximizing one goal subject to constraints on the remaining goals. In other cases, utility functions that incorporate expected income and income variability have been estimated for individual farm operators. Although these approaches are an effort to incorporate more than one goal in the decision process, firm growth research in general has not been based on multiple-goal decision models.

Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 6 , Issue 1 , July 1974 , pp. 103 - 110
Copyright
Copyright © Southern Agricultural Economics Association 1974

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

*

Oklahoma State University Agricultural Experiment Station Journal Article J-2801. This paper is based on a cooperative research project of the Oklahoma Agricultural Experiment Station and the National Economic Analysis Division, Economic Research Service, U.S. Dept. of Agriculture.

References

[1] Baumol, William J.Economic Theory and Operations Analysis. 2nd ed. Englewood Cliffs, N.J.: Prentice-Hall, Inc., pp. 295–310, 1965.Google Scholar
[2] Bekure, Solomon. “An Economic Analysis of the Intertemporal Allocation of Ground Water in the Central Ogallala Formation.” Unpublished Ph.D. thesis, Oklahoma State University, 1971.CrossRefGoogle Scholar
[3] Cyert, R.M., and March, J. G.. A Behavioral Theory of the Firm. Englewood Cliffs, N.J.: Prentice-Hall, Inc., pp. 26–43, 1963.Google Scholar
[4] Eidman, Vernon R., et al. Decision Models for California Turkey Growers. Giannini Foundation Monograph No. 21, July 1968.Google Scholar
[5] Ferguson, C.E. “The Theory of Multidimensional Utility Analysis in Relation to Multiple-Goal Business Behavior: A Synthesis.” Southern Economic Journal, Vol. 32, pp. 169–175, 1965.CrossRefGoogle Scholar
[6] Halter, Albert N., and Dean, Gerald W.. Decisions Under Uncertainty. Dallas, Tex.: South-Western Publishing Co. pp. 54–57, 1971.Google Scholar
[7] Harman, Wyatte L., et al. An Evaluation of Factors Affecting the Hierarchy of Multiple Goals. Oklahoma Agricultural Experiment Station Technical Bulletin T-134, June 1972.Google Scholar
[8] Harman, Wyatte L., et al. “Relating Farm and Operator Characteristics to Multiple Goals.” Southern Journal of Agricultural Economics, Vol. 4, pp. 215–220, July 1972.Google Scholar
[9] Hatch, Roy E. “Growth Potential and Survival Capability of Southern Plains Dryland Farms: A Simulation Analysis Incorporating Multiple-Goal Decision-Making.” Unpublished PhD. thesis, Oklahoma State University, 1973.Google Scholar
[10] Hutton, R.F., and Hinman, H. R.. A General Agricultural Firm Simulator, Revised. Pennsylvania Agricultural Experiment Station Bulletin No. 72, July 1969.Google Scholar
[11] Martin, J.R., and Plaxico, J.S.. Polyperiod Analysis of Growth and Capital Accumulation of Farms in the Rolling Plains of Oklahoma and Texas. USDA Technical Bulletin 1381, Sept. 1967.Google Scholar
[12] Officer, R.R., and Halter, A. N.. “Utility Analysis in a Practical Setting.” American Journal of Agricultural Economics, Vol. 50, pp. 257–277, May 1968.CrossRefGoogle Scholar
[13] Patrick, George F., and Eisgruber, Ludwig M.. “The Impact of Managerial Ability and Capital Structure on Growth of the Farm Firm.” American Journal of Agricultural Economics, Vol. 50, pp. 491–506, Aug. 1968.CrossRefGoogle Scholar