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Preference Representations for Catastrophic Risk Analysis

In: The Economics of the Global Environment

Author

Listed:
  • Richard E. Ericson

    (East Carolina University)

  • Jamie L. Kruse

    (East Carolina University)

Abstract

This note surveys some behavioral models of preference relations applicable for analysis of decisions in the face of catastrophic risk. Catastrophic risk is characterized, and the implications of various representations explored in simple, illustrative examples. An argument is presented for the more general applicability of “variational preferences” for the analysis of behavior and decision making in the face of catastrophic risk.

Suggested Citation

  • Richard E. Ericson & Jamie L. Kruse, 2016. "Preference Representations for Catastrophic Risk Analysis," Studies in Economic Theory, in: Graciela Chichilnisky & Armon Rezai (ed.), The Economics of the Global Environment, pages 39-69, Springer.
    • Handle: RePEc:spr:steccp:978-3-319-31943-8_3
    DOI: 10.1007/978-3-319-31943-8_3
    as

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