The Problem of Prevention
Juan Dubra () and
No 1111, Documentos de Trabajo/Working Papers from Facultad de Ciencias Empresariales y Economia. Universidad de Montevideo.
Many disasters are foreshadowed by insuficient preventive care. In this paper, we argue that there is a true problem of prevention, in that insu¢ cient care is often the result of rational calculations on the part of agents. We identify two factors that lead to dubious e¤orts in care. First, when objective risks of a disaster are poorly understood, positive experiences may lead to an underestimation of these risks and a corresponding underinvestment in prevention. Second, redundancies designed for safety may lead agents to reduce their care, resulting in a decrease in safety under certain conditions. We also analyze the use of checklists in accident prevention
Keywords: Overconfidence; Better than Average; Experimental Economics; Irrationality; Signalling Models (search for similar items in EconPapers)
JEL-codes: D11 D12 D82 D83 (search for similar items in EconPapers)
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Journal Article: ON THE PROBLEM OF PREVENTION (2013)
Working Paper: The problem of prevention (2007)
Working Paper: The Problem of Prevention (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:mnt:wpaper:1111
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