The Hedonics of Hedonism - Estimating the Value of Risk-Taking Activities

Stefan Borsky () and Paul Anton Raschky ()

Kyklos, 2009, vol. 62, issue 2, pages 210-225

Abstract: This paper estimates the individual willingness to pay (WTP) for the option to exercise risk-taking. We use data of 69 Austrian Ski resorts and 3,637 reported ski accidents and apply the hedonic market method. Our results suggest that the individual WTP for a hypothetical increase in the possibility to undertake risk-taking activities lies between 11% and 25% of the price of a ski-lift-ticket. Monetized values help design pricing schemes that set incentives to reduce risk-taking behavior as well as to develop alternative instruments to reduce the adverse effects of risk-taking activities (e.g. accidents). Copyright 2009 Blackwell Publishing Ltd.

Date: 2009

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Persistent link: http://EconPapers.repec.org/RePEc:bla:kyklos:v:62:y:2009:i:2:p:210-225

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