ESTIMATION OF RANDOM PRICE RATIOS: AN APPLICATION TO THE PRODUCTION OF BEEF MEAT VS PORK MEAT

Authors

  • Miguel A. Martínez-Damián

Keywords:

Resource allocation, multiple production, beta distribution, economics

Abstract

Because prices are in general variable, this paper models the resource allocation between beef and pork meat under the assumption that the price ratio among them is random. The probability model used in this allocation is the beta distribution yielding a scale factor of 3.73 in the reduction in uncertainty associated with unwanted events.

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Published

30-09-1999

Issue

Vol. 33 No. 3 (1999): 1999-jul-sep

Section

Notes

License

Agrociencia is a sesquimonthly open access publication in a format entirely in English, and edited by the Colegio de Postgraduados. Mexico-Texcoco highway Km. 36.5, Montecillo, Texcoco, Estado de México, CP 56264, Telephone (52) 5959284427. https://www.colpos.mx/cp/. Editor-in-Chief: Dr. Fernando Carlos Gómez Merino. Rights Reserved for Exclusive Use: 04-2021-031913431800-203, e-ISSN: 2521-9766, granted by the National Institute for Author Right.