In the context of food, convenience is generally associated with less healthy foods. Given the reality of present-biased preferences, if convenience was associated with healthier foods and less healthy foods were less convenient, people would likely consume healthier foods. This study examines...

Approximately 31 million children enroll in the National School Lunch Program and nearly 1/3 of children between the ages of 6 and 19 are considered obese. What if the school food environment made healthy food choices easier for children? One overlooked scalable alternative involves students...

Rational choice theory commonly assumes that the presence of unselected choices cannot impact which among the remaining choices is selected-often referred to as independence of irrelevant alternatives. We show that such seemingly irrelevant alternatives influence choice in a school lunch...

With a mandate, U.S. policy of ethanol tax credits designed to reduce oil consumption does the exact opposite. A tax credit is a direct gasoline consumption subsidy with no effect on the ethanol price and therefore does not help either corn or ethanol producers. To understand this, consider...

Previous studies have found underestimation of risk, or overconfidence, to be a key factor in entrepreneurship. We use a simple model of competitive equilibrium to show that an irrational under-estimation of risk provides a competitive advantage leading to a greater chance of survival under...

We show how leakage differs, depending on the biofuel policy and market conditions. Carbon leakage is shown to have two components: a market leakage effect and an emissions savings effect. We also distinguish domestic and international leakage. International leakage is always positive, but...

The importance of risk preferences in agricultural production has long been identified as an important and preeminent issue of policy relevance. Recent developments in the study of production risk have called into question much of the core of risk production research. This article provides an...

Biofuel policies are a subset of policies designed to achieve energy security, an improved environment, enhanced agricultural incomes, technological change, and overall economic benefits, with increased domestic energy production creating green jobs and foreign exchange savings. In assessing...

Recently, Rabin criticized the use of diminishing marginal utility in explaining risk aversion in small gambles with a mathematical theorem, which compares revealed risk averting behavior in small gambles to the risk behavior implied by expected utility theory in somewhat larger gambles, using...