RISK,UTILITY AND STOCKING RATE*

A simple utility-based model of risky wool production is presented. Evaluation of the model indicates the effect on optimal stocking rate of changes in the degree of risk aversion, farm area, variable cost, fixed cost, wool cut, wool price, variance of wool price, climatic variability and tax rate. It is shown that the utility hypothesis implies a lower optimal stocking rate than does expected profit maximization and hence implies a discrepancy between private and public optimal resource use which it is suggested, might be mitigated by a progressive bounty on wool production.     

Editorial

Original Papers

Editorial     

Think globally,act locally

This article presents a conceptual framework for understanding the phenomenon of globalization and global mindset. Globalization is a phenomenon that permeated the entire human life on a worldwide basis: from the level of the individual to the world level. Technology, and especially Information Technology (IT), i.e., the combination of computers and telecommunications, made globalization feasible, while liberalization of the world's commercial and political regimes made it reality. The implications for business enterprises, and, for that matter, for any organized effort aimed at satisfying human needs, are indeed immense. The proposed framework calls for the development of people who (1) think globally and (2) act locally. These people see the entire world as their oyster and are able to adapt their global thinking to the local contexts. Neither of these attributes are innate to most people. Both are acquired attributes. Most of us can learn to think globally and act locally. © 1998 John Wiley & Sons, Inc.