This paper discusses some of the failings of expected utility including the Allais paradox and expected utility's inadequate one dimensional characterization of risk. Three alternatives to expected utility are discussed at length; weighted expected utility, rank dependent utility, and cumulative...

The vast majority of previous studies on farmers' optimal risk management behavior have used static models and on the most part ignored use of borrowing and lending as an alternative method of managing risk In this paper we develop a stylized multi-period risk management model for a risk averse...

Accurate pricing of weather derivatives is critically dependent upon correct specification of the underlying weather process. We test among six likely alternative processes using maximum likelihood methods and data from the Fresno, CA weather station. Using these data, we find that the best...

The inaccuracy of the Black-Scholes formula arises from two aspects: the formula is for European options while most real option contracts are American; the formula is based on the assumption that underlying asset prices follow a lognormal distribution while in the real world asset prices cannot...

Existing derivative pricing methods cannot be used to price weather derivatives due to the absence of a hedgeable commodity underlying weather risk and the complexity of weather processes. This study develops a pricing model that considers weather derivatives to be the same as any other...

California specialty crop growers are exposed to extreme price volatility, as well as considerable yield volatility caused by fluctuations in temperature, precipitation, and other specific weather events. Weather derivatives do provide a promising market-based solution to managing risks for...

As part of ProSafeBeef, an integrated research project funded by the European Commission, the present qualitative study was carried out with European consumers to obtain insights into their acceptance or rejection of eight selected novel beef production and processing technologies, identified...

Consumer demand in relation to food is increasingly shifting towards products that are safe, nutritious, and of good eating quality. Beef consumers are demanding for experience quality that matches their quality expectations formed prior to consumption, particularly with respect to beef...

The globalization of markets, increased specialization in customers services, shorter lead times, are among the main factors influencing the change in firms organization. The firms disintegration is growing, leading to an increased demand for collaborative management along the supply chain. The...

This paper investigates the developments in the Dutch Agri-Food innovation system. Main components of the system are agriculture and agribusiness, the promotion of interests in the lobby system and the knowledge system. Each has its own dynamics but they are until now tied together by...