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Agricultural Econ
Introductory Defintions
| Term | Definition |
|---|---|
| Rational Model of Choice (Homo Economicus) | 1.how people *should* behave when acting in their own best interests. 2.Individual uses all available information to choose "consumption bundle" that maximizes the consumer's utility/wellbeing. 3. Complete knowledge, stable system of preferences, unl |
| Behavioural Model of Choice (Homo Sapiens) | 1. How people *do* behave, how individuals actually make choices. 2. Individuals have imperfect information and cognitive resources 3. The experience of the individual during an economic action can greatly influence the outcome. Heterogeneity in agents |
| Conventional policy options for Obesity | 1. Price interventions (i.e., taxes or subsididies) 2. Information or education efforts 3. Remove poor choices from the consumer's choice set (e.g., banning of unhealthy food products) 4. |
| Behavioural policy options for Obesity (pros/cons) |