Intermediate Microeconomics and Its Application 11th Edition by Walter Nicholson,Christopher Snyder

Exercise 2

The Griliches article was part of a larger debate in economics about the ''rationality'' of farmers. Some economists argued that farmers should be studied in the way one studies any firm-that is, as a profit-maximizing entity. Others argued that farmers made decisions on ''noneconomic'' grounds such as tradition or availability of information. Who would you support in this debate? How did the Griliches study contribute to it?