Measuring Risk Reduction Benefits with Discounted Longevity

Robert F. Bordley
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Robert F. Bordley: General Motors Research Laboratories, Warren, Michigan

Operations Research, 1990, vol. 38, issue 5, 815-819

Abstract: There are many ways to assess the benefits and costs of risk-reduction policies. This paper shows that discounted longevity as a measure of benefits and the negative of net output as a measure of costs can be deduced from the Shepard and Zeckhauser utility-maximization model.

Keywords: cost analysis: cost/benefit analysis; decision analysis: risk; utility/preference: multiattribute utility theory (search for similar items in EconPapers)
Date: 1990
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