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A Dynamic Decision Model of Technology Adoption underUncertainty: Case of Herbicide-Resistant Rice

Published online by Cambridge University Press:  28 April 2005

Mamane M. Annou ,
Eric J. Wailes  and
Michael R. Thomsen
Mamane M. Annou
Affiliation:
Department of Agricultural Economics and Agribusiness, Division of Agriculture, University of Arkansas, Fayetteville, AR
Eric J. Wailes
Affiliation:
Department of Agricultural Economics and Agribusiness, Division of Agriculture, University of Arkansas, Fayetteville, AR
Michael R. Thomsen
Affiliation:
Department of Agricultural Economics and Agribusiness, Division of Agriculture, University of Arkansas, Fayetteville, AR
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Abstract

Herbicide-resistant (HR) rice technology is a potential tool for control ofred rice in commercial rice production. Using an ex antemathematical programming framework, this research presents an empiricalanalysis of HR rice technology adoption under uncertainty. The analysisaccounts for stochastic germination of red rice and sheath blight to model aprofit maximization problem of crop rotation among HR rice, regular rice,and soybeans. The results demonstrate that risk attitudes and technologyefficiency determine adoption rates and optimal rotation patterns.

Keywords

biotechnologyherbicide resistancemathematical programmingprofit maximizationriceriskrotationtechnology adoptionQ16Q18O33C61

Information

Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 37 , Issue 1 , April 2005 , pp. 161 - 172
Copyright
Copyright © Southern Agricultural Economics Association 2005

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