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Valuing Risk in Experimental Markets: Self-Protection, Self-Insurance, and Collective Action

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The purpose of this project was to examine the economic value formation process in experimental markets of private and collection self-protection and self-insurance. Three different experiments were designed which examine individual choice and behavioral outcomes under risk and uncertainty. The goal of the project was to determine if and how the value of risk differs under various reduction mechanisms. The lessons learned from these controlled laboratory experiments provide avenues for exploration by practitioners of the contingent valuation method.
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Date Linked: 05/28/2009

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