Economics and Philosophy 22 (2):231-241 (2006)
|Abstract||Mainstream risk analysis deviates in at least two important respects from the rationality ideal of mainstream economics. First, expected utility maximization is not applied in a consistent way. It is applied to endodoxastic uncertainty, i.e. the uncertainty (or risk) expressed in a risk assessment, but in many cases not to metadoxastic uncertainty, i.e. uncertainty about which of several competing assessments is correct. Instead, a common approach to metadoxastic uncertainty is to only take the most plausible assessment into account. This will typically lead to risk-prone deviations from risk-neutrality. Secondly, risks and benefits for different persons are added to form a total value of risk. Such calculations are used to support the view that one should accept being exposed to a risk if it brings greater benefits for others. This is in stark contrast to modern Paretian welfare economics, that refrains from interindividual comparisons and does not require people to accept a disadvantage because it brings a larger advantage for others. (Published Online July 11 2006).|
|Keywords||No keywords specified (fix it)|
|Through your library||Configure|
Similar books and articles
Thomas Kenner & Karl P. Pfeiffer (1986). The Risk Concept in Medicine — Statistical and Epidemiological Aspects: A Case Report for Applied Mathematics in Cardiology. Theoretical Medicine and Bioethics 7 (3).
Andreas Lange (2001). A Note on Decisions Under Uncertainty: The Impact of the Choice of the Welfare Measure. Theory and Decision 51 (1):51-71.
Richard Watt, Francisco J. Vázquez & Ignacio Moreno (2001). An Experiment on Rational Insurance Decisions. Theory and Decision 51 (2/4):247-296.
Douglas MacLean (1982). Quantification, Regulation, and Risk Assessment. PSA: Proceedings of the Biennial Meeting of the Philosophy of Science Association 1982:243 - 260.
Frank C. Krysiak (2009). Risk Management as a Tool for Sustainability. Journal of Business Ethics 85:483 - 492.
Sven Ove Hansson (2004). Weighing Risks and Benefits. Topoi 23 (2).
Sven Ove Hansson (2003). Ethical Criteria of Risk Acceptance. Erkenntnis 59 (3):291 - 309.
John Kadvany (1997). Varieties of Risk Representations. Journal of Social Philosophy 28 (3):123-143.
Added to index2009-01-28
Total downloads34 ( #35,408 of 549,683 )
Recent downloads (6 months)2 ( #37,450 of 549,683 )
How can I increase my downloads?