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Agricultural Econ

Introductory Defintions

Rational Model of Choice (Homo Economicus) 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)



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