The name is absent



level of damage compared to applying an insecticide
such as Scout.

CONCLUSIONS

As outlined by Dixit investment decisions, three
characteristics underlie consideration of alternative
insecticides. First, there exist both monetary and
nonmonetary sunk costs associated with investigat-
ing and considering the alternatives. These costs
cannot be recouped if the decision to replace an
insecticide is reversed in the future. For example, as
noted by a reviewer, many local pesticide dealers or
applicators only sell a limited number of com-
pounds, which limits a producer’s options. Producer
efforts to have dealers acquire alternative pesticides
entails sunk costs. A second feature of the decision
is the uncertain economic and physical environment,
and information that may reduce this uncertainty is
limited. Third, the consideration of alternative in-
secticides recurs and includes not only whether to
select an alternative insecticide but when to switch.
Given these three characteristics, waiting has posi-
tive value. This value of waiting should be com-
pared to the loss of cιπτent profit. If information on
alternative insecticides becomes sufficiently favor-
able, a decision to switch insecticides, according to
current information, should be undertaken and not
delayed into the future. This view of considering
alternative insecticides is termed, by Dixit, a theory
of optimal inertia.

As producers evaluate their production systems to
select alternative insecticides, the quantity and cali-
ber of information available underlie their decisions.
Information based on results presented in this paper
indicate that alternative, less-toxic chemicals may
currently be available for risk-efficient control of
soybean stink bug damage. This information sup-
ports a decision to not delay in switching insecti-
cides. Considering the toxicity of methyl parathion,
the possibility of currently available alternative stink
bug control is encouraging. If the price of methyl
parathion continues to increase relative to other less
toxic chemicals, the risk efficiencies of these alter-
native insecticides will become even more pro-
nounced. Thus, producers might not jeopardize
returns, and environmental degradation may be re-
duced with further restrictions on the supply and use
of methyl parathion.

Unfortunately, this conclusion is based on only two
years of experimental field plot data, which does not
result in a definitive conclusion. Without additional
research results supporting these conclusions, pro-
ducers will be unlikely, based on the theory of opti-
mal inertia, to select less toxic chemical control of
stink bugs. Farm management programs might pro-
vide suggestions in selection of these alternative
chemicals. However, care is required in making
such suggestions. Failure to consider all relevant
elements of the production system may be the source
of error leading to inappropriate suggestions.

REFERENCES

Adams, D.B., and R.M. McPherson. Control Insects in Soybeans. Georgia Cooperative Extension Service
Circular 720,1990.

Adams, D.B., R.M. McPherson, D.C. Jones, and D.L. Horton. “Soybean Insects” In Summary of Lossesfrom
Insect Damage and Costs of Control in Georgia, 1989,
G.K. Douce and R.M. McPherson, eds. University
OfGeorgia Agr. Exp. Sta. Spec. Pub. 70. Feb 1991.

Cohrssen, J.J., and V.T. Covello. Risk Analysis: A Guide to Principles and Methodsfor Analyzing Health
and Environmental Risks.
The National Technical Information Service, U.S. Department of Commerce,
1989.

Chyen, D. “Evaluation of Soybean Stink Bug Control Alternatives for the Southeastern United States.” M.S.
thesis, University of Georgia, 1991.

Dixit, A. “Investment and Hysteresis.” J. Econ. Perspectives, 6(1992):107-132.

Environmental Protection Agency. “Labeling Requirements for Pesticides and Devices.” Code of Federal
Regulations,
Title 40, Part 156,1991.

Georgia Cooperative Extension Service. Georgia Pest Control Handbook. University of Georgia, 1990 and
1991.

Georgia Crop Reporting Service. Georgia Agricultural Facts. 1983-90 issues.

Gilman, D.F., R.M. McPherson, L.D. Newsom, D.C. Herzog, and C. Williams. “Resistance in Soybeans to
the Southern Green Stink Bug.”
Crop Science, 22(1982):573-576.

Given, W.D., and F. Mills. Crop Enterprise Cost Analysis, South Georgia 1989. Georgia Cooperative
Extension Service, Mis. Publication 27-S, 1988.

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