The 1996 FAIR Act has emphasized the importance of teaching agricultural producers to understand and respond rationally to risk. The following are guidelines for considering risk: (1) analyze decisions using a payoff matrix, (2) estimate the probabilities of events, (3) consider individual...

Risk aversion is well established in the health and safety literature, and ambiguity is addressed in theoretical and experimental economics literature, but few theoretically-consistent empirical models addressing the relationship between ambiguity, risk, and preferences exist. Even fewer address...

Experimental subjects receive a different presentation of a food product's potential health risk reductions if people habitually eat it, and then asked to bid for the product. Results suggest that the bids vary across the groups that receive differing risk information.