Journal of Family and Economic Issues, Vol. 24(3), Fall 2003  2003 Human Sciences Press, Inc. 291 Factors Affecting the Probability of Choosing a Risky Diet Michael S. Finke Sandra J. Huston University of Missouri-Columbia ABSTRACT: Eating a poor diet is risky behavior. Inadequate nutrition compromises health and can increase the probability of premature death and/or reduced life quality. This paper uses a cost-benefit analysis from a health economic perspective to assess impact of costs and benefits associated with the odds of choosing a risky diet. Results indicate that time preference as measured through education, smoking, exercise, nutri- tion panel use, and motivation for nutrition knowledge significantly affect the odds of choosing a risky diet. In addition, variables hypothesized to influence the associated costs of tradeoff between present and future utility—location (both region and urbaniz- ation), income, race, gender, and age—are found to have an impact on the likelihood of choosing a risky diet. KEY WORDS: diet choice; risk; time preference. Consumption decision making often involves weighing current wel- fare against the probability of increased risk of premature mortality or reduced life quality. Those who smoke do so despite an elevated probability of disease, as do those who drink excessively, work in dan- gerous occupations, choose a sedentary versus an active lifestyle, and those who choose to consume an unhealthy diet. Each of these activ- ities involves a choice to weigh present satisfaction against the risk of a reduction in future satisfaction. Each of us is endowed with a certain stock of health, which is a component of our overall human capital. This stock of health can either enhance or limit our ability to obtain satisfaction during our lifetime. For example, a fit 65 year-old retiree may be able to travel, dance, or Michael S. Finke is Assistant Professor in the Department of Consumer and Family Economics, University of Missouri-Columbia, 239 Stanley Hall, Columbia, MO 65211; e-mail: FinkeMmissouri.edu. Sandra J. Huston is Visiting Assistant Professor in the Department of Consumer and Family Economics, University of Missouri-Columbia, 239 Stanley Hall, Columbia, MO 65211; e-mail: HustonSJmissouri.edu.