THE EFFECT OF MANAGER RISK ATTITUDES ON RANGE IMPROVEMENT DECISIONS

Despite the availability of potentially profitable range improvement alternatives, private land ranch managers in the central US are not readily adopting recommended range improvement practices. The objectives of this study were to estimate the expected value and variability of net returns derived from several range improvement practices and use this information to assess the influence that manager risk attitudes have on the selection of range improvement practices. A stochastic range simulation model was used to provide estimates of expected value and variability of income following the application of several range improvement practices in the Cross Timbers Region. Generalized stochastic dominance procedures were then used to rank these practices for managers characterized by alternative risk attitudes. Results of the analysis illustrate that optimal range improvement practices may be sensitive to manager risk attitudes. -from Authors