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Article
Second Order Ambiguity in Very Low Probability Risks: Food Safety Valuation
Journal of Agricultural and Resource Economics (2010)
  • P A Kivi
  • J F Shogren
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.
Disciplines
Publication Date
December, 2010
Citation Information
P A Kivi and J F Shogren. "Second Order Ambiguity in Very Low Probability Risks: Food Safety Valuation" Journal of Agricultural and Resource Economics Vol. 35 Iss. 3 (2010)
Available at: http://works.bepress.com/jason_shogren/7/