The accurate description of the contingent market is a necessary condition for eliciting willingness-to-pay values. So far, however, the contingent market for a reduction in the risk of being the victim of a road accident has only been broadly specified. This Swiss experiment attempts to define...

Articles developing health-health analysis have used the observation that richer people tend to face reduced mortality risk to estimate the break-even cost per life saved of health regulations. If government requires that the private sector spend more than this break-even cutoff, the risk of...

Professional options traders priced risky prospects as well as uncertain prospects whose outcomes depended on future values of various stocks. The prices of the risky prospects coincided with their expected value, but the prices of the uncertain prospects violated expected utility theory. An...

We outline an approach for assessing preferences in the form of a finite-dimensional, linear-lexicographic utility function when they lack the continuity properties necessary for representing them in the form of a real-valued, von Neumann-Morgenstern utility function. This approach takes the...

During the last decade, the distribution of workers compensation claims has exhibited a marked shift towards soft tissue injuries such as sprains, stains, and low back claims. There are three possible explanations for this trend: (1) safety incentives induced by workers compensation or OSHA may...

Experimental investigations of non-expected utility have primarily concentrated on decision under risk ("probability triangles"). The literature suggests, however, that ambiguity is one of the main causes for deviations from expected utility (EU). This article investigates the descriptive...

This study reports an attempt to measure the value of an increased survival probability at advanced ages. It turns out that the average willingness to pay for a program which would increase the expected length of life by one year, conditional on having survived to the age of 75 years, is lower...

Standard economic theory predicts that the forced of an insurance policy to the purchase of a risky product cannot be welfare enhancing. At best, such insurance is redundant due to cheaper methods of insuring against loss, and, at worst, such coverage is not demanded at all. Exploiting the...