Risk is often perceived by farmers as being more formidable in new technologies emanating from agricultural research than in more traditional practices. Consequently risk may tend to act as an impediment to adoption of improved practices as well as a general friction on efficient use of...

The study uses Theil's concept of certainty equivalence and bias to analyse the production decisions of the purely competitive firm when some of its inputs are controlled and others are non-controlled and subject to random influences. Conditions are outlined under which a surrogate procedure...