Economics and Philosophy 22 (2):231-241 (2006)

Authors
Sven Ove Hansson
Royal Institute of Technology, Stockholm
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)
Categories (categorize this paper)
DOI 10.1017/S0266267106000885
Options
Edit this record
Mark as duplicate
Export citation
Find it on Scholar
Request removal from index
Revision history

Download options

PhilArchive copy


Upload a copy of this paper     Check publisher's policy     Papers currently archived: 58,425
Through your library

References found in this work BETA

No references found.

Add more references

Citations of this work BETA

Risk.Sven Ove Hansson - 2008 - Stanford Encyclopedia of Philosophy.
Hypothetical Retrospection.Sven Ove Hansson - 2007 - Ethical Theory and Moral Practice 10 (2):145-157.

Add more citations

Similar books and articles

Ethical Criteria of Risk Acceptance.Sven Ove Hansson - 2003 - Erkenntnis 59 (3):291 - 309.
Risk Management as a Tool for Sustainability.Frank C. Krysiak - 2009 - Journal of Business Ethics 85 (S3):483 - 492.
Quantification, Regulation, and Risk Assessment.Douglas MacLean - 1982 - PSA: Proceedings of the Biennial Meeting of the Philosophy of Science Association 1982:243 - 260.
Varieties of Risk Representations.John Kadvany - 1997 - Journal of Social Philosophy 28 (3):123-143.

Analytics

Added to PP index
2009-01-28

Total views
77 ( #131,672 of 2,420,826 )

Recent downloads (6 months)
1 ( #543,487 of 2,420,826 )

How can I increase my downloads?

Downloads

My notes