Incorporating multiple sources of risk into the determination of optimal fertilization rates
Talpaz, H.; Taylor, C.R.
Proceedings of AAEA Meeting July/August 1977, Contributed Papers: 1110
A theoretical framework for incorporating three sources of risk - weather, price and production response - is presented. The decision criterion considered is the maximization of profit subject to risk constraint, where risk is defined as the probability of not recovering cost of fertilization. A two-source risk numerical application is provided.