The Hedonics of Hedonism – Estimating the Value of Risk‐Taking Activities

Stefan Borsky and Paul Raschky

Kyklos, 2009, vol. 62, issue 2, 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).

Date: 2009
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https://doi.org/10.1111/j.1467-6435.2009.00432.x

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

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