Previous studies have found underestimation of risk, or overconfidence, to be pervasive. In this paper, we model overconfidence as a reduction in perceived variance. We generalize the analysis of Sandmo and examine the effects of competition on firms displaying overconfidence. Cases for both...

This article quantifies the effect of the 2006 food-borne illness spinach outbreak on harvested acreage for the fresh spinach market. In September 2006, fresh spinach contaminated with E. coli O157:H7 caused hundreds of consumer illnesses across the U.S. and a few deaths. The outbreak was...