Using a quasi-field experiment, we report on subjects' perceptions of the risks of hurricanes. All experimental subjects were displaced by either Hurricane Katrina or Rita, in New Orleans and other Gulf Coast areas, except for a small control group consisting of people who live in central Texas....

This study examines the effects of the risk from transporting high-level radioactive waste to the proposed Yucca Mountain repository on housing location decisions in Southern Nevada. Using data from a survey of southern Nevada households, we develop a model-based subjective risk estimate for...

Although ambiguity has received ample attention in the theoretical expected-utility literature, measures of ambiguity are rare. Here, I present a framework for eliciting and estimating risk and ambiguity simultaneously using a risk ladder. The model, based on a variant of the...

This article takes a fresh look at how public uncertainty influences willingness to pay (WTP) for climate-change mitigation programs. I elicit subjective distribution functions over future global mean temperatures and WTP for mitigation. I find, not surprisingly, that subjects, on average, view...

We conduct multiple price list experiments that elicit life duration risk preferences from amateur auto racers, technical rock climbers, SCUBA divers, and a student control group. We posit a preference function that allows for risk aversion and probability weighting. We are particularly...

This paper investigates whether preferences over environmental risks are best modeled using probability-weighted utility functions or can be reasonably approximated by expected utility (EU) or subjective EU models as is typically assumed. I elicit risk attitudes in the financial and...

If housing markets exhibit slow adjustment to system shocks, then hedonic estimates of the price impact from environmental amenity trends may be time variant. This paper suggests an alternative to the cross-sectional model for estimating hedonic prices using an error correction approach that...

This paper explores how property-right assignment affects social efficiency when a public program has both “public good” and “public bad” components. We show that when willingness to accept a public bad exceeds the willingness to pay, the net benefit is unambiguously lower when the...