 Conclusion of Part 1Akio Torii
Chapter Chapter 7 in Decision-making in High-Risk Projects, 2024, pp 65-84 from Springer Abstract: Abstract If the decision to promote the use of nuclear energy is made without sufficient risk assessment, what factors could have contributed to this inadequate assessment? To address this issue, I develop a model in which the agent managing the project incurs a cost to gather information for risk assessment; the DM evaluates the social costs and benefits of the project based on this information, and decides whether to execute the project. Although the model used in the analysis is a simple one, many factors are analyzed. The main factors identified in the analysis that deter the effort for risk assessment include optimism about the risk of the operating agent of the project, large private profit associated with the business, discrepancy between the expected magnitude of the risk in the agent and the criteria required by society, large difference in risk expectations between the agent and the DM, and ambiguous liability. Meanwhile, factors that do not deter the operating agent from effort in risk assessment include: the ability to capture the DM and make decisions independently of the DM, and the ability to keep risk-related information confidential. Date: 2024 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-97-3056-8_7 Ordering information: This item can be ordered from DOI: 10.1007/978-981-97-3056-8_7 Access Statistics for this chapter More chapters in Springer Books from Springer |
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