Environmental Economics

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

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.
The report is organized as follows:

    Chapter 1. Valuing Risk in Experimental Markets
    2. Experimental Markets with One Risk Reduction Mechanism
    3. Experimental Markets with Two Risk Reduction Mechanisms
    4. Coasian Bargaining over Ex Ante Lotteries and Ex Post Rewards
    5. Conclusions and Future Extensions
    1. Benefits Analysis
    1. Benefits Analysis - Valuation
    1. Benefits Analysis - Valuation - Stated Preference
    1. Benefits Analysis - Valuation - Stated Preference - Contingent Valuation
    Environmental Media:
    f. Multimedia
    Shogren, Jason F.
    EPA Project Officer/ Manager:
    Geographic Area:
    North Carolina, United States
    Study Purpose:
    Empirical Application, Methodology Development & Evaluation
    Inventory Record #: EE-0249
  • Participating Organizations

    Research Organization:

    Appalachian State University,
    Walker College of Business,
    Department of Economics
    City: Boone State: NC ZIP: 28608
    Phone: Fax:
    Funding Organization:
    Environmental Protection Agency
    Office of Policy, Planning and Evaluation
    City: Washington State: DC ZIP:
    Phone: Fax:
  • Report Details
    Number of Pages:
    Grant/Contract #:
  • How to Obtain Report

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    Date Linked: 05/28/2009