VALUE OF FEEDBACK IN AGRICULTURAL DECISIONS

The value of feedback in the agricultural decision-making process was determined by comparison between open and closed loop optimization mod els under different conditions of risk aversion. An optimization via s imulation of expected utility with dynamic stochastic constraints is d etermined using a mathematical programming routine. As a test case, sh rimp aquaculture in South Texas is described by a system of stochastic non-linear differential equations. Results show that value of feedbac k depends on the level of risk aversion of the decision maker. Copyrig ht (C) 1996 Published by Elsevier Science Ltd