Modeling at farm level: Positive Multi-Attribute Utility Programming

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...

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Bibliographic Details
Published in:Omega (Oxford) 2016-12, Vol.65, p.17-27
Main Authors: Gómez-Limón, José A., Gutiérrez-Martín, Carlos, Riesgo, Laura
Format: Article
Language:English
Subjects:
Decision making
Farmers
Farmers׳ behavior
Mathematical models
Mathematical programming
Multicriteria
Positive approach
Simulation
Studies
Utility functions
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Summary: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. •New positive multi-attribute model to simulate farmers׳ decision-making.•PMAUP overcomes the limitations of other positive mathematical approaches.•Five-step process to elicit the utility function that reproduces farmers׳ decisions.•Results show PMAUP accurateness in reproducing actual farmers׳ decision-making.
ISSN:0305-0483
1873-5274
DOI:10.1016/j.omega.2015.12.004