RISK PROGRAMMING IN AGRICULTURAL SYSTEMS - A MULTIPLE CRITERIA ANALYSIS

The article proposes a multi-criteria approach for dealing with risk when modelling an agricultural system through the simultaneous use of risk and game-theoretic programming. The use of multi-criteria techniques enables the decision maker to study the trade-offs and conflicts between profitability (expected returns) and risk (measured either by Partial Absolute Deviation (PAD) or minimum gain). The research for this paper suggests that, in practice, solutions generated by risk and game-theoretic programming are quite similar. A by-product of this research has been to clarify the relationships between stochastic efficiency and target MOTAD, and game-theoretic efficient sets.