The Effect of Risk Presentation on Product Valuation: An Experimental Analysis

We examine how people might evaluate a product with novel attribute, given various kinds of risk information. Using a product with healthful benefits, we assess subjects' willingness to pay given various kinds of health risk information conveying reduced health risks, life tradeoffs, and ambiguity. Four treatments in separate non-hypothetical experimental auctions are used to elicit willingness to pay values. Results suggest that willingness to pay vary across the groups that receive differing risk information. Specifically, willingness to pay was higher for the group that was given clear risk information and questions related to life tradeoffs than for the group given ambiguous risk information. Willingness to pay was lowest for the group that was given no risk information at all.Risk and Uncertainty,

The Effect of Communicating Ambiguous Risk Information on Choice

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.a-Maximin Expected Utility, aggregation of expert opinions, ambiguity, Knightian uncertainty, risk communication, trust in information source, Risk and Uncertainty,

Risk information recommendation for engineering workers.

Within any sufficiently expertise-reliant and work-driven domain there is a requirement to understand the similarities between specific work tasks. Though mechanisms to develop similarity models for these areas do exist, in practice they have been criticised within various domains by experts who feel that the output is not indicative of their viewpoint. In field service provision for telecommunication organisations, it can be particularly challenging to understand task similarity from the perspective of an expert engineer. With that in mind, this paper demonstrates a similarity model developed from text recorded by engineer’s themselves to develop a metric directly indicative of expert opinion. We evaluate several methods of learning text representations on a classification task developed from engineers' notes. Furthermore, we introduce a means to make use of the complex and multi-faceted aspect of the notes to recommend additional information to support engineers in the field

A constitutive model for the superplastic material ALNOVI-1 including leak risk information

For some applications, it is important that a formed sheet of material is completely gas tight, therefore it is beneficial to be able to predict whether a formed sheet will be leak tight for gases or not. Superplastic materials show the ability to attain very high plastic strains before failure. These strains can only be reached within a small range of tempera-ture and strain rate. In thecase of the alu-minium alloy ALNOVI-1 by Furukawa Sky Aluminium, the optimum superplastic be-haviour is found at 520 °C and at strain rates roughly between 10-4 to 10-2 s-1. Under these conditions, the mechanical behaviour of the material is highly strain rate depend-ent. This article describes a proposal for the constitutive model of ALNOVI-1, as can be incorporated into an FE code (like a user-defined material UMAT in ABAQUS), in which the leak risk can be implemented, as function of the cavity volume fraction. This will be done in a phenomenological way, using the results of uniaxial tensile and biaxial bulge experiments

Regulatory Practices and the Impossibility to Extract Truthful Risk Information

We consider a regulator providing deposit insurance to a bank with private information about its investment portfolio. Following current regulatory practices, we assume that the regulator does not commit to audit and sanction after any risk report from the bank. We show that, in absence of commitment, the socially optimal contract leads a high-risk bank to misreport its risk with positive probability in most cases. We also isolate cases when truthful risk report is optimal. We thus establish that extraction of truthful risk information is not socially optimal in most cases given current regulatory practices.Banking Regulation, Partial Commitment, Asymmetric Information, Adverse Selectio

AN EVALUATION OF CONSUMER PESTICIDE RESIDUE CONCERNS AND RISK INFORMATION SOURCES

Marginal probability effects of demographic variables on consumer concerns about pesticide residues were assessed as well as the likelihood of consumer beliefs given different channels of information on produce safety and risks. This was done using maximum likelihood estimation (MLE) of ordered logit models. The empirical results showed that pesticide residue concern levels appeared to be lower for more highly educated and high income households. Safety information from the academic community was found to have the highest likelihood of acceptance by consumers.Risk and Uncertainty,

Risk information formalisation with graphs

The logistics is an essential economic activity that is intended to manage the physical and data flows (informative, customs and financial), in order to provide the resources corresponding to more or less determined needs in compliance with the specified economic and legal conditions (subject to the quality- of-service targets and the security and safety conditions are satisfactory). The links between formalized information, risk management in production logistics and adaptation to technological and market changes, are essential to industrial companies. In this paper, we have followed a structured approach, keeping within a formal risk management framework, for continually improving production logistics practices and procedures by experience feedback processes. The information derived from the risk assessment in production logistics is formalized by the conceptual graphs, permitting to ease the logical expressions and enhance the semantic quality of visual representation produced. The proposal is illustrated more clearly by a concrete case study of the production logistics adopted for aircraft manufacturing in an European Aeronautic Company

Risk information of corporate governance

Treball Final de Grau en Finances i Comptabilitat. Codi: FC1049. Curs: 2014/2015The disclosure of risk-related information is of great importance in today’s highly uncertain environment. Furthermore, it is evident that there is a need for both relevant and high-quality information. It has become clear that this information is essential for both the making of important decisions as well as the ability to create accurate forecasts. Studies that have been performed on the disclosure of risk information that has been Spanish companies’ show that a high percentage of the analysed companies are reporting on some sort of risk, additionally we can clearly see that the reported risks are pre-dominantly non-financial risks. The results that we have obtained with this study have shown that the variables of corporate governance and the variables of control that we have analysed are not significantly related to the disclosure of risk information. Furthermore, the three evaluated hypotheses show that the variables related to corporate governance, such as board size, board independence, and the percentage of capital held by the board do not significantly affect the disclosure of risks by the Spanish companies that we have analysed in this study