Valuing low probability risk

Survey and experimental evidence

Jamie Brown Kruse, Mark Andrew Thompson

Research output: Contribution to journalArticle

19 Citations (Scopus)

Abstract

This study uses a survey question and an economics experiment to elicit the value of a risk mitigation investment. For 93 subjects (48 males and 45 females) the responses to hypothetical questions are compared with a risk mitigation decision that has a salient outcome. We find no gender-differentiated responses to either the maximum accepted price in the economics experiment or hypothetical willingness to pay questions from the survey. In our design, the two procedures generate aggregate measures that were in close agreement, however individual decisions were seldom consistent.

Original languageEnglish (US)
Pages (from-to)495-505
Number of pages11
JournalJournal of Economic Behavior and Organization
Volume50
Issue number4
DOIs
StatePublished - Apr 1 2003
Externally publishedYes

Fingerprint

Lower probabilities
Risk mitigation
Economic experiments
Willingness-to-pay

Keywords

  • Experiment
  • Gender
  • Low probability risk
  • Risk mitigation
  • Survey

ASJC Scopus subject areas

  • Organizational Behavior and Human Resource Management
  • Economics and Econometrics

Cite this

Valuing low probability risk : Survey and experimental evidence. / Kruse, Jamie Brown; Thompson, Mark Andrew.

In: Journal of Economic Behavior and Organization, Vol. 50, No. 4, 01.04.2003, p. 495-505.

Research output: Contribution to journalArticle

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