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

Author:
Kivi, Paul A., Shogren, Jason F.
Source:
Journal of agricultural and resource economics 2010 v.35 no.3 pp. 443-456
ISSN:
1068-5502
Subject:
food consumption, food safety, risk, surveys, uncertainty, willingness to pay
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.
Agid:
5945242