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The Problem of Prevention

Listed author(s):
  • Juan Dubra

    ()

  • Jean-Pierre Benoit
Registered author(s):

    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

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    File URL: http://www.um.edu.uy/docs/working_paper_um_cee_2011_11.pdf
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    Paper provided by Facultad de Ciencias Empresariales y Economia. Universidad de Montevideo. in its series Documentos de Trabajo/Working Papers with number 1111.

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    Date of creation: 2011
    Handle: RePEc:mnt:wpaper:1111
    Contact details of provider: Postal:
    Prudencio de Pena 2440, Montevideo 11600

    Web page: http://www.um.edu.uy/cee/

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    1. Dubra, J., 1999. "Overconfidence in Search," Working Papers 99-10, C.V. Starr Center for Applied Economics, New York University.
    2. Gollier, Christian, 2002. "Optimal Prevention of Unknown Risks: A Dynamic Approach with Learning," IDEI Working Papers 139, Institut d'Économie Industrielle (IDEI), Toulouse.
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