Revealed Preferences: Comments on the Starr Benefit-Risk Relationships

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http://eprints.org/relation/isVersionOf https://pure.iiasa.ac.at/id/document/535 http://eprints.org/relation/isVolatileVersionOf https://pure.iiasa.ac.at/id/document/535 http://eprints.org/relation/isCoversheetVersionOf https://pure.iiasa.ac.at/id/document/535 archive 351 disk0/00/00/05/11 2016-01-15 01:43:06 2021-08-27 17:08:15 2016-01-15 01:43:06 monograph show 2 Otway H.J. AL0308 Cohen J.J. Revealed Preferences: Comments on the Starr Benefit-Risk Relationships pub iis_rsk iis_mod prog_enp Societal preferences related to risk acceptance form an important input into decisions affecting the selection and deployment of large-scale technological systems. These preferences may be determined either by psychometric survey techniques or through the analysis of recorded statistical data. The latter method, revealed preferences, has been used, most notably by Starr, to derive mathematical relationships between societal benefit and technological risk. In this paper the merits of the revealed preference approach are summarized and the validity of the Starr quantitative results is examined. It is concluded that these results are excessively sensitive to the assumptions made and the handling of data and that the existence of simple mathematical relationships, based upon the revealed preferences method, is unlikely. Plans for further research in determining societal preferences are outlined. 1975-03 published RM-75-005 RM-75-005 2271 public research_memorandum IIASA, Laxenburg, Austria 17 FALSE info:eu-repo/semantics/book