IDENTIFYING THE SET OF SSD-EFFICIENT MIXTURES OF RISKY ALTERNATIVES

Target MOTAD and other direct utility-maximization models provide one way of computing SSD-efficient mixtures. These models are appropriate when the utility function is known and can also be used to identify part of the set of SSD-efficient mixtures even when the utility function is not known. However, they do not always identify all SSD-efficient mixtures. A grid method was proposed by Bawa, Lindenberg, and Rafsky. A third approach, which extends the work of Dybvig and Ross, is presented here. It is illustrated by applying it to data from Anderson, Dillon, and Hardaker.


Issue Date:
1987-07
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/32468
Published in:
Western Journal of Agricultural Economics, Volume 12, Number 1
Page range:
86-94
Total Pages:
9




 Record created 2017-04-01, last modified 2017-04-04

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