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Modeling at farm level: Positive Multi-Attribute Utility Programming

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  • Gómez-Limón, José A.
  • Gutiérrez-Martín, Carlos
  • Riesgo, Laura
Abstract
This article proposes a new mathematical programming model for the simulation of farmers׳ decision-making. We have developed a model based on a multi-attribute utility approach that takes into consideration the most relevant attributes of farmers within a positive framework. This approach overcomes the limitations found in some mathematical models used in the literature to simulate farmers׳ behavior. A five-step procedure is presented in order to elicit the utility function that reproduces farmers׳ current decision-making. We illustrate this positive multi-attribute approach using a sample of farmers in an irrigated area in southern Spain, where our simulations demonstrate the accurateness of the model in reproducing actual farmers׳ decision-making. We also find evidence that the model is able to explain the heterogeneous behavior of farmers within a homogeneous agricultural system.

Suggested Citation

  • Gómez-Limón, José A. & Gutiérrez-Martín, Carlos & Riesgo, Laura, 2016. "Modeling at farm level: Positive Multi-Attribute Utility Programming," Omega, Elsevier, vol. 65(C), pages 17-27.
    • Handle: RePEc:eee:jomega:v:65:y:2016:i:c:p:17-27
    DOI: 10.1016/j.omega.2015.12.004
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