The Effect of Communicating Ambiguous Risk Information on Choice
Decision makers are frequently confronted with ambiguous risk information about activities with potential hazards. This may be a result of conflicting risk estimates from multiple sources or ambiguous risk information from a single source. The paper considers processing ambiguous risk information and its effect on the behavior of a decision maker with a-maximin expected utility preferences. The effect of imprecise risk information on behavior is related to the content of information, the decision makerâ€™s trust in different sources of information, and his or her aversion to ambiguity.
Volume (Year): 36 (2011)
Issue (Month): 2 (August)
|Contact details of provider:|| Web page: http://waeaonline.org/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ghirardato, Paolo & Maccheroni, Fabio & Marinacci, Massimo, 2004. "Differentiating ambiguity and ambiguity attitude," Journal of Economic Theory, Elsevier, vol. 118(2), pages 133-173, October.
- Chambers, Robert G. & Melkonyan, Tigran, 2009. "Smoothing preference kinks with information," Mathematical Social Sciences, Elsevier, vol. 58(2), pages 173-189, September.
- Larry G. Epstein & Martin Schneider, 2001.
RCER Working Papers
485, University of Rochester - Center for Economic Research (RCER).
- Smith, V Kerry & Desvousges, William H, 1990. "Risk Communication and the Value of Information: Radon as a Case Study," The Review of Economics and Statistics, MIT Press, vol. 72(1), pages 137-42, February.
- Camerer, Colin & Weber, Martin, 1992. " Recent Developments in Modeling Preferences: Uncertainty and Ambiguity," Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 325-70, October.
- Mark J. Machina & David Schmeidler, 1990.
"A More Robust Definition of Subjective Probability,"
Discussion Paper Serie A
306, University of Bonn, Germany.
- Machina, Mark J & Schmeidler, David, 1992. "A More Robust Definition of Subjective Probability," Econometrica, Econometric Society, vol. 60(4), pages 745-80, July.
- Machina,Mark & Schmeidler,David, 1991. "A more robust definition of subjective probability," Discussion Paper Serie A 365, University of Bonn, Germany.
- Wallace E. Huffman & Matthew Rousu & Jason F. Shogren & Abebayehu Tegene, 2004.
"Who Do Consumers Trust for Information: The Case of Genetically Modified Foods?,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 86(5), pages 1222-1229.
- Huffman, Wallace & Rousu, Matthew & Shogren, Jason F. & Tegene, Abebayehu, 2002. "Who Do Consumers Trust for Information? The Case of Genetically Modified Foods," Staff General Research Papers 10061, Iowa State University, Department of Economics.
- Thibault Gadjos & Jean-Marc Tallon & Jean-Christophe Vergnaud, 2002.
"Decision Making with Imprecise Probabilistic Information,"
2002-33, Centre de Recherche en Economie et Statistique.
- Gajdos, Thibault & Tallon, Jean-Marc & Vergnaud, Jean-Christophe, 2004. "Decision making with imprecise probabilistic information," Journal of Mathematical Economics, Elsevier, vol. 40(6), pages 647-681, September.
- Thibault Gajdos & Jean-Marc Tallon & Jean-Christophe Vergnaud, 2002. "Decision Making with Imprecise Probabilistic Information," ICER Working Papers - Applied Mathematics Series 18-2003, ICER - International Centre for Economic Research, revised May 2003.
- Thibault Gajdos & Jean-Marc Tallon & Jean-Christophe Vergnaud, 2004. "Decision Making with Imprecise Probabilistic Information," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00086021, HAL.
- Viscusi, W Kip & Magat, Wesley A, 1992. " Bayesian Decisions with Ambiguous Belief Aversion," Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 371-87, October.
- Mary Riddel & W. Shaw, 2006. "A theoretically-consistent empirical model of non-expected utility: An application to nuclear-waste transport," Journal of Risk and Uncertainty, Springer, vol. 32(2), pages 131-150, March.
- Steffen Andersen & John Fountain & Glenn W. Harrison & Arne Risa Hole & E. Elisabet RutstrÃ¶m, 2010. "Inferring Beliefs as Subjectively Uncertain Probabilities," Experimental Economics Center Working Paper Series 2010-14, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University.
- Mary Riddel & Christine Dwyer & W. Douglass Shaw, 2003. "Environmental Risk and Uncertainty: Insights from Yucca Mountain," Journal of Regional Science, Wiley Blackwell, vol. 43(3), pages 435-458.
- Gilboa, Itzhak & Schmeidler, David, 1989. "Maxmin expected utility with non-unique prior," Journal of Mathematical Economics, Elsevier, vol. 18(2), pages 141-153, April.
- Yoram Halevy, 2007.
"Ellsberg Revisited: An Experimental Study,"
Econometric Society, vol. 75(2), pages 503-536, 03.
- V. Kerry Smith & William H. Desvousges & F. Reed Johnson & Ann Fisher, 1990. "Can public information programs affect risk perceptions?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 9(1), pages 41-59.
- Viscusi, W Kip, 1997. "Alarmist Decisions with Divergent Risk Information," Economic Journal, Royal Economic Society, vol. 107(445), pages 1657-70, November.
- George Chryssochoidis & Anna Strada & Athanasios Krystallis, 2009. "Public trust in institutions and information sources regarding risk management and communication: towards integrating extant knowledge," Journal of Risk Research, Taylor & Francis Journals, vol. 12(2), pages 137-185, March.
- Richard T. Woodward & Richard C. Bishop, 1997. "How to Decide When Experts Disagree: Uncertainty-Based Choice Rules in Environmental Policy," Land Economics, University of Wisconsin Press, vol. 73(4), pages 492-507.
- Marciano Siniscalchi, 2003.
"A Behavioral Characterization of Plausible Priors,"
234936000000000064, UCLA Department of Economics.
- Shaw, W. Douglass & Woodward, Richard T., 2008. "Why environmental and resource economists should care about non-expected utility models," Resource and Energy Economics, Elsevier, vol. 30(1), pages 66-89, January.
- repec:ebl:ecbull:v:4:y:2006:i:20:p:1-8 is not listed on IDEAS
- Schmeidler, David, 1989.
"Subjective Probability and Expected Utility without Additivity,"
Econometric Society, vol. 57(3), pages 571-87, May.
- David Schmeidler, 1989. "Subjective Probability and Expected Utility without Additivity," Levine's Working Paper Archive 7662, David K. Levine.
- John B. Loomis & Pierre H. duVair, 1993. "Evaluating the Effect of Alternative Risk Communication Devices on Willingness to Pay: Results from a Dichotomous Choice Contingent Valuation Experiment," Land Economics, University of Wisconsin Press, vol. 69(3), pages 287-298.
- Quiggin, John, 1982. "A theory of anticipated utility," Journal of Economic Behavior & Organization, Elsevier, vol. 3(4), pages 323-343, December.
- Ghirardato, Paolo & Marinacci, Massimo, 2002. "Ambiguity Made Precise: A Comparative Foundation," Journal of Economic Theory, Elsevier, vol. 102(2), pages 251-289, February.
When requesting a correction, please mention this item's handle: RePEc:ags:jlaare:117170. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.