Findings from behavioral and psychological studies indicate that people regularly and predictably behave in ways that contradict some standard assumptions of economic analysis. Recognizing that consumption choices are determined by factors other than prices, income, and information illuminates a...

Economists have traditionally viewed the behavioral response to risk as continuous and proportional. In contrast, psychologists have often contended that people have little control over their response to risk that is dichotomous, non-proportional, visceral, and fear-based. In extreme cases, this...

How would a possible food safety scare influence food consumption? Using techniques from experimental psychology, a study of 103 lunchtime participants suggests that a food scare -- avian influenza -- would decrease food by 17% if they believed it was naturally occurring and by 26% if they...