Mad Cows, Terrorism and Junk Food: Should Public Policy Reflect Subjective or Objective Risks?

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Empirical evidence suggests that people’s risk-perceptions are often systematically biased. This paper develops a simple framework to analyse public policy when this is the case.

Do You Enjoy Having More Than Others? Survey Evidence of Positional Goods

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Although conventional economic theory proposes that only the absolute levels of income and consumption matter for people’s utility, there is much evidence that relative concerns are often important.

Experiments