APPLICATIONS OF GAME THEORY MODELS IN AGRICULTURE*

Due to the time lag between investment and payoff, the price-taking nature of agriculture, stochastic weather variables and other factors, the uncertainty faced by decision makers in agriculture is greater than and different from that confronting managers of most other sectors of economy. In this paper, game theory models have been applied to the problem of decision making under uncertainty in agriculture. The authors examine and compare the pros and cons of the four conventional theories of choice in decision making in agriculture. The four theories are: (a) Wald's maximin criterion, (b) Laplace's principle of “insufficient reason”, (c) Hurwicz's “optimism-pessimism” criterion and (d) Savage's “regret” criterion. In this study, applications have been made to the choice of type of farming, optimum dosage of fertiliser and manure and the most appropriate time of selling agricultural produce. The authors propose an additional theory of choice—the criterion of “benefit”—which seems more appropriate than the conventional theories under many situations.     

Situational and brand attitude models of consumer choice behavior

Three situational factors may directly affect consumers' brand intentions: the likelihood a given situation will occur for the consumer, the likelihood the product will be a part of the situation, and the likelihood that a given brand will be consumed in the situation. Models relating situational effects and consumer attitudes to brand intentions are discussed in this article. The literature on situational influences in consumer behavior is briefly reviewed.