We analyze in this chapter decision-making when costs and benefits of an action are uncertain, that is, when future preferences are uncertain. We begin, in Section 2, with the classical analysis by Krutilla et al. (1972) of whether the expected consumer's surplus is a correct measure of the net...

A question has arisen concerning the relationship between the financial theory of options and the concept of option value developed in the literature on environmental preservation. This article presents simple models in each approach and then demonstrates their equivalence. The conventional,...