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

Paul A. Kivi and Jason Shogren

Journal of Agricultural and Resource Economics, 2010, vol. 35, issue 3, 14

Abstract: 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

Keywords: Risk; and; Uncertainty (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:jlaare:97857

DOI: 10.22004/ag.econ.97857

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