Abstract

http://ssrn.com/abstract=4160
 


 



The Value of Private Safety Versus the Value of Public Safety


Magnus Johannesson


Stockholm School of Economics - Department of Economics

Per-Olov Johansson


Stockholm School of Economics

Richard M. O'Conor


Stockholm School of Economics


JOURNAL OF RISK AND UNCERTAINTY, Vol. 13, No. 3, 1996

Abstract:     
In this study, one group of respondents is offered to purchase a safety device to be installed in their car, while another group is offered a public safety program (improved road quality) which results in the same size risk reduction. In terms of the value of a statistical life, our results are very reasonable. However, the WTP for the private safety device is higher than the WTP for the public safety measure. Drawing on a model developed by Jones-Lee (1991), we show that some types of altruists may, but need not, be willing to pay more for a private risk reduction than for a uniform risk reduction of the same magnitude. Still, our empirical results are surprising, and further empirical research seems warranted.

JEL Classification: D61, D91, H51, I10, I12

Accepted Paper Series





Not Available For Download

Date posted: August 27, 1996  

Suggested Citation

Johannesson, Magnus and Johansson, Per-Olov and O'Conor, Richard M., The Value of Private Safety Versus the Value of Public Safety. JOURNAL OF RISK AND UNCERTAINTY, Vol. 13, No. 3, 1996. Available at SSRN: http://ssrn.com/abstract=4160

Contact Information

Magnus Johanneson
Stockholm School of Economics - Department of Economics ( email )
P.O. Box 6501
Sveavagen 65
S-113 83 Stockholm
Sweden
+46 8 736 9443 (Phone)
HOME PAGE: http://www.hhs.se/Faculty/showperson.htm?personid=198
Per-Olov Johansson (Contact Author)
Stockholm School of Economics ( email )
P.O. Box 6501
Stockholm
SWEDEN
+46 8 736 92 82 (Phone)
+46 8 30 21 15 (Fax)
Richard M. O'Conor
Stockholm School of Economics ( email )
P.O. Box 6501
Stockholm
SWEDEN
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