Neve, Jan-Emmanuel De; Goudie, Robert J. B.; Mukherjee, Sach - Centre for Economic Performance, LSE - 2012
Most governments try to discourage their citizens from taking extreme risks with their health and lives. Yet, for reasons not understood, many people continue to do so. We suggest a new approach to this longstanding question. First, we show that expected-utility theory predicts that 'happier'...