Breyer, Friedrich; Felder, Stefan - In: The Geneva Papers on Risk and Insurance Theory 30 (2005) 1, pp. 41-55
In the expected-utility theory of the monetary value of a statistical life, a well-known result found by Pratt and Zeckhauser [1996] asserts that an individuals’ willingness to pay (WTP) for a marginal reduction in mortality risk increases with the initial level of risk. Their reasoning is...