Article thumbnail
Location of Repository

Why environmental and resource economists should care about non-expected utility models

By W. Douglass Shaw and Richard T. Woodward

Abstract

Experimental and theoretical analysis has shown that the conventional expected utility (EU) and subjective expected utility (SEU) models, which are linear in probabilities, have serious limitations in certain situations. We argue here that these limitations are often highly relevant to the work that environmental and natural resource economists do. We discuss some of the experimental evidence and alternatives to the SEU. We consider the theory used, the problems studied, and the methods employed by resource economists. Finally, we highlight some recent work that has begun to use some of the alternatives to the EU and SEU frameworks and discuss areas where much future work is needed

Topics: Environmental economics, Expected utility, Risk, Uncertainty
Year: 2007
OAI identifier: oai:CiteSeerX.psu:10.1.1.471.1225
Provided by: CiteSeerX
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • http://agecon2.tamu.edu/people... (external link)
  • http://agecon2.tamu.edu/people... (external link)
  • http://citeseerx.ist.psu.edu/v... (external link)
  • Suggested articles


    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.