Economists attribute many common behaviors to risk aversion and frequently focus on how wealth moderates risk preferences. This paper highlights a problem associated with empirical tests of the relationship between wealth and risk aversion that can arise when the probabilities individuals face...

The use of agricultural decoupled support has increased as World Trade Organization (WTO) member nations implement less trade distortive policies. However, the true production effects of these policies are still unclear. We show how the exclusion restrictions of U.S. direct payments, namely, the...

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...

We examine the correlation between farmers' beliefs and practices regarding GM crops with yield shocks from the previous year the crop was grown. Farmers who may have had poor yields due to weather, were more likely to change adoption decisions. Yields marginally affect farmers' beliefs...

We analyze sources of information in agricultural markets to understand patterns of demand for decision support services and the division of labor in the supply of these services. Information formatting-qualitative variation that determines accessibility and relevance of information in specific...

We use a generalized Bayesian updating model to estimate the impact of health information appearing in the popular media on the consumption of eggs. Our model allows media publications with differing circulation numbers to have differing effects. Further, we explore the possible effects of...