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Perceived Hazard and Product Choice: An Application to Recreational Site Choice

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  • Jakus, Paul M
  • Shaw, W Douglass

Abstract

We develop a "perceived hazard" model that estimates consumers' endogenous risk perceptions about products. These perceptions are then linked to a model of product choice. Our approach thus departs from the expected utility model that depends upon external risk assessments. In an application to recreational fishing, we find that anglers' perceived hazards associated with fish consumption advisories do affect product (recreational site) choice. Anglers' perceptions also affect welfare measures because the benefits of contaminant removal flow from these perceptions. The perceived hazard/product choice model is applicable to a wide variety of risky choices consumers face. Copyright 2003 by Kluwer Academic Publishers

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  • Jakus, Paul M & Shaw, W Douglass, 2003. "Perceived Hazard and Product Choice: An Application to Recreational Site Choice," Journal of Risk and Uncertainty, Springer, vol. 26(1), pages 77-92, January.
    • Handle: RePEc:kap:jrisku:v:26:y:2003:i:1:p:77-92
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    15. Heng Z. Chen & Stephen R. Cosslett, 1998. "Environmental Quality Preference and Benefit Estimation in Multinomial Probit Models: A Simulation Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 512-520.
    16. Train, Kenneth & McFadden, Daniel & Johnson, Reed, 2000. "Discussion of Morey and Waldman's "Measurement Error in Recreation Demand Models"," Journal of Environmental Economics and Management, Elsevier, vol. 40(1), pages 76-81, July.
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    1. Jakus, Paul M. & McGuinness, Meghan & Krupnick, Alan J., 2002. "The Benefits and Costs of Fish Consumption Advisories for Mercury," Discussion Papers 10853, Resources for the Future.
    2. Johnston, Robert J. & Segerson, Kathleen & Schultz, Eric T. & Besedin, Elena Y. & Ramachandran, Mahesh, 2011. "Indices of biotic integrity in stated preference valuation of aquatic ecosystem services," Ecological Economics, Elsevier, vol. 70(11), pages 1946-1956, September.
    3. Mara Thiene & Riccardo Scarpa, 2008. "Hiking in the Alps: Exploring Substitution Patterns of Hiking Destinations," Tourism Economics, , vol. 14(2), pages 263-282, June.
    4. Thomann, Christian & Pascalau, Razvan & Schulenburg, J.-Matthias Graf von der & Gas, Bruno, 2007. "Corporate Management of Highly Dynamic Risks: The Case of Terrorism Insurance in Germany," MPRA Paper 7221, University Library of Munich, Germany.
    5. Cash, Sean B. & Lacanilao, Ryan D. & Adamowicz, Wiktor L. & Raine, Kim, 2008. "An Experimental Investigation of the Impact of Fat Taxes: Prices Effects, Food Stigma, and Information Effects on Economics Instruments to Improve Dietary Health," Consumer and Market Demand Network Papers 45499, University of Alberta, Department of Resource Economics and Environmental Sociology.
    6. W. Douglass Shaw & Mark Walker & Marnee Benson, 2005. "Treating and Drinking Well Water in the Presence of Health Risks from Arsenic Contamination: Results from a U.S. Hot Spot," Risk Analysis, John Wiley & Sons, vol. 25(6), pages 1531-1543, December.
    7. Johnston, Robert J. & Schultz, Eric T. & Segerson, Kathleen & Besedin, Elena Y. & Ramachandran, Mahesh, 2013. "Stated Preferences for Intermediate versus Final Ecosystem Services: Disentangling Willingness to Pay for Omitted Outcomes," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 42(1), pages 1-21, April.
    8. Thuy Truong & Wiktor Adamowicz & Peter C. Boxall, 2018. "Modelling the Effect of Chronic Wasting Disease on Recreational Hunting Site Choice Preferences and Choice Set Formation over Time," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 70(1), pages 271-295, May.
    9. Thomas Lundhede & Jette Bredahl Jacobsen & Nick Hanley & Niels Strange & Bo Jellesmark Thorsen, 2015. "Incorporating Outcome Uncertainty and Prior Outcome Beliefs in Stated Preferences," Land Economics, University of Wisconsin Press, vol. 91(2), pages 296-316.
    10. Douglas J. MacNair & William H. Desvousges, 2007. "The Economics of Fish Consumption Advisories: Insights from Revealed and Stated Preference Data," Land Economics, University of Wisconsin Press, vol. 83(4), pages 600-616.
    11. Haab, Timothy C. & Whitehead, John C. & Parsons, George R. & Price, Jammie, 2010. "Effects of information about invasive species on risk perception and seafood demand by gender and race," Resource and Energy Economics, Elsevier, vol. 32(4), pages 586-599, November.
    12. Robert J. Johnston & Eric T. Schultz & Kathleen Segerson & Elena Y. Besedin & Mahesh Ramachandran, 2012. "Enhancing the Content Validity of Stated Preference Valuation: The Structure and Function of Ecological Indicators," Land Economics, University of Wisconsin Press, vol. 88(1), pages 102-120.
    13. Lea Nicita & W. Douglass Shaw & Giovanni Signorello, 2018. "Valuing the Benefits of Rock Climbing and the Welfare Gains from Decreasing Injury Risk," Risk Analysis, John Wiley & Sons, vol. 38(11), pages 2258-2274, November.

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