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The Effect of Communicating Ambiguous Risk Information on Choice

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  • Melkonyan, Tigran A.

Abstract

Decision makers are frequently confronted with ambiguous risk information about activities with potential hazards. This may be a result of conflicting risk estimates from multiple sources or ambiguous risk information from a single source. The paper considers processing ambiguous risk information and its effect on the behavior of a decision maker with a-maximin expected utility preferences. The effect of imprecise risk information on behavior is related to the content of information, the decision maker’s trust in different sources of information, and his or her aversion to ambiguity.

Suggested Citation

  • Melkonyan, Tigran A., 2011. "The Effect of Communicating Ambiguous Risk Information on Choice," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(2), pages 1-21, August.
    • Handle: RePEc:ags:jlaare:117170
    DOI: 10.22004/ag.econ.117170
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    Cited by:

    1. Bond, Craig A. & Iverson, Terrence, 2011. "Modeling Information in Environmental Decision-Making," Western Economics Forum, Western Agricultural Economics Association, vol. 10(2), pages 1-17.
    2. Shepherd, Jonathan D. & Saghaian, Sayed H., 2015. "Risk Perception and Trust Interaction in Response to Food Safety Events across Products and the Implications for Agribusiness Firms," Journal of Food Distribution Research, Food Distribution Research Society, vol. 46(3), pages 1-21, November.

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