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Second Order Ambiguity in Very Low Probability Risks: Food Safety Valuation
Kivi, P. A. Shogren, Jason F.
Kivi, P. A.
Shogren, Jason F.
Abstract
Description
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.
Date
2010-12-01
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Publisher
University of Wyoming. Libraries
Research Projects
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Keywords
ambiguity,ambiguity avoidance,expected utility theory,food safety,low probability events,risk,second-order probabilities,uncertainty,Economics