Second-Order Ambiguity in Very Low Probability Risks: Food Safety Valuation

Food consumption involves inherently risky decisions with uncertain probabilities. This study examines how second-order ambiguity, or uncertainty over probabilities, affects food safety decisions. We conduct a food safety survey wherein subjects face both unambiguous and ambiguous situations, each with the same expected value. Respondents show a preference for unambiguous situations and state a willingness to pay to avoid ambiguity

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Year of publication:	2010
Authors:	Kivi, Paul A. ; Shogren, Jason F.
Published in:	Journal of Agricultural and Resource Economics. - Western Agricultural Economics Association - WAEA. - Vol. 35.2010, 3
Publisher:	Western Agricultural Economics Association - WAEA
Subject:	ambiguity \| ambiguity avoidance \| expected utility theory \| food safety \| low probability events \| risk \| second-order probabilities \| uncertainty \| Risk and Uncertainty

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Extent:	application/pdf
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008802894