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The Hedonics of Hedonism – Estimating the Value of Risk‐Taking Activities

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  • Stefan Borsky
  • Paul A. Raschky

Abstract

This paper estimates the individual willingness to pay (WTP) for the option to exercise risk‐taking. We use data of 69 Austrian Ski resorts and 3,637 reported ski accidents and apply the hedonic market method. Our results suggest that the individual WTP for a hypothetical increase in the possibility to undertake risk‐taking activities lies between 11% and 25% of the price of a ski‐lift‐ticket. Monetized values help design pricing schemes that set incentives to reduce risk‐taking behavior as well as to develop alternative instruments to reduce the adverse effects of risk‐taking activities (e.g. accidents).

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  • Stefan Borsky & Paul A. Raschky, 2009. "The Hedonics of Hedonism – Estimating the Value of Risk‐Taking Activities," Kyklos, Wiley Blackwell, vol. 62(2), pages 210-225, April.
    • Handle: RePEc:bla:kyklos:v:62:y:2009:i:2:p:210-225
    DOI: 10.1111/j.1467-6435.2009.00432.x
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    Cited by:

    1. Sergio Alessandrini, 2013. "Quality of Ski Resorts and Competition Between the Emilian Apennines and Altipiani Trentini. an Estimate of the Hedonic Price," Review of Economic Analysis, Digital Initiatives at the University of Waterloo Library, vol. 5(1), pages 42-69, June.
    2. Wolff, François-Charles, 2014. "Lift ticket prices and quality in French ski resorts: Insights from a non-parametric analysis," European Journal of Operational Research, Elsevier, vol. 237(3), pages 1155-1164.
    3. Martin Falk, 2011. "International Price Differences in Ski Lift Tickets," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 147(III), pages 303-336, September.
    4. Jan Wieseke & Anika Kolberg & Laura Marie Schons, 2016. "Life could be so easy: the convenience effect of round price endings," Journal of the Academy of Marketing Science, Springer, vol. 44(4), pages 474-494, July.
    5. Robert C. Fonner & Robert P. Berrens, 2014. "A Hedonic Pricing Model of Lift Tickets for US Alpine Ski Areas: Examining the Influence of Crowding," Tourism Economics, , vol. 20(6), pages 1215-1233, December.
    6. François-Charles Wolff, 2014. "Lift ticket prices and quality in French ski resorts: Insights from a non-parametric analysis," Working Papers hal-00952999, HAL.

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