A Note on First Step Analysis and Rangeland Management Under Uncertainty

Abstract

Recently, Batabyal and Godfrey (2002) have used a discrete-time Markov chain model to analyze the problem of rangeland management under uncertainty. In the present note, I continue this line of inquiry. In particular, I first show how the technique of first step analysis can be used to derive a time based objective function for a range manager. Next, I discuss aspects of the decision problem faced by a range manager who wishes to optimize the above objective function and thereby minimize the cost to society from range desertification.

Keywords: Desertification, Markov Chain, Rangeland Management, Uncertainty

JEL Classification: Q20, D81