Cattle ranching and "iwi' system in Batangas: choice of alternative production arrangements
Date
1995-01
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Abstract
The persistence of seemingly inefficient production arrangements alongside advanced arrangements are at time dismissed as resulting from the irrationality of the economic actors involved. A closer scrutiny, however, may dispute such judgment and yield interesting propositions on the elements of economic choice. This study looks into the co-existence of two distinct systems of cattle raising in Batangas -- the ranching and the "iwi" system -- with the objective of explaining why a seemingly inferior arrangement (in terms of profitability) persists despite the availability of an alternative. In particular, it provides a descriptive analysis of how the entrepreneur's choice between the "iwi" and ranching arrangements in Batangas is influenced by risk, uncertainty, entrepreneurial ability, opportunity cost and the costs of learning and information.
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Keywords
Cattle ranching, "Iwi" system