Decision Tools

Teacher(s)

Bouquiaux Jean-Marie; Gaspart Frédéric coordinator; Georges Benoît;

Language

English

Prerequisites

General skills for a bio-engineering bachelor, animal and vegetal productions, introductory management, micro-economics and introduction to game theory

Main themes

- Part 1 After an introduction on the agricultural production economy, the role of major production factors in the efficient management of agricultural firms is characterized. The mains tools for analysis and decision making are explained and used in practical exercises. The main agricultural and food branches are outlined. The development of the agricultural sector in Belgium and in Europe is analysed.
- Part 2 The course outlines, explains and compares various decision problems and decision-making tools within the unifying framework of game theory. It distinguishes (and shows the complementarities of) statistics and economic analysis. Complex decisions under uncertainty in situations with several interacting decision-makers are illustrated with relevant examples.

Content

Part 1)
1.     Present discounted value
2.     The main agricultural production factors
3.     Decision making tools : global and partial budgets, linear programming, program planning, cluster and factorial analysis, risk analysis
4.     The main agricultural branches (including agro-food branches)
5.     Transversal issues : taxes, prices, energy costs, pollutions, animal feed, organic production,...
(Part 2)
1. Elements of games in developped forms (including VNM utility)
2. Non-cooperative bargaining (the Rubinstein model and variants)
3. Agency (1) : moral hazard and boiling-in-oil contracts
4. Agency (2) : screening vs statistical discrimination
5. Agency (3) : signaling

Teaching methods

Classes and homeworks

Evaluation methods

Written exams, mainly exercises for both parts

Other information

This course can be given in English.

Online resources

Moodle

Faculty or entity

AGRO