American Journal of Agricultural Economics · 1984 · 49 citations · 12 references
BusinessRange ManagementRangeland ManagementDecision TheoryStochastic ModelingStochastic ProcessesOptimization Under UncertaintyRangeland RiskRangeland UncertaintyRisk-sensitive Decision MakingStochastic ControlStochastic OptimizationFinite Markov ChainsFinite-state Markov ChainsOptimal PoliciesRange Forb ConditionRisk In Rangeland ManagementRobust Stochastic ControlStochastic Optimal ControlUncertainty In Rangeland Management
Abstract The problem of rangeland management is modeled as a stochastic control problem. The manager periodically chooses stocking rates and decides whether to use a treatment which improves the rangeland. His decisions have an uncertain impact on the rangeland. The theory of finite Markov chains is used to analyze the solution to the control problem. The stochastic specification of the model is varied to test the sensitivity of the optimal policies. These are quite robust except at certain levels of the range condition. Cases of a risk‐neutral and risk‐averse manager are studied.
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