SOUTHERN JOURNAL OF AGRICULTURAL ECONOMICS DECEMBER, 1985 RISK PERCEPTIONS AND MANAGEMENT RESPONSES: PRODUCER-GENERATED HYPOTHESES FOR RISK MODELING

Abstract function (Knez et al.). Wilde et al. are even Farm level risk analyses have used price stronger in their criticism of EUT. These au-and yield variability almost exclusively to thors argue that it is beyond the ability of represent risk. Results from a survey of 149 individuals to optimize; moreover, this ina-agricultural producers in 12 states indicate bility will increase as the information avail-that producers consider a broader range of able to decisionmakers increases. Even Arrow, sources of variability in their operations. Sig- who has contributed significantly to the risk nificant differences exist among categories analysis literature, questions the economist's with respect to the importance of the sources ability to empirically validate EUT-of variability in crop and livestock produc- Agricultural economists have drawn heav-tion. Producers also used a variety of man- ily upon the EUT paradigm to analyze re-agement responses to variability. There were source allocation problems in agriculture significant difference among categories in the E arly work by in problem s in agrilture. Early work by Lin et al. demonstrated thatimportance given to particular responses andy n their use of them. These results have impli- utility maximization more closely reflecte