So how much would you pay to avoid dying (with certainty) (i.e. what is your Willingness to Pay)?
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So how much would you pay to avoid dying (with certainty) (i.e. what is your Willingness to Pay)?
June 3, 2020 Comments Off on So how much would you pay to avoid dying (with certainty) (i.e. what is your Willingness to Pay)? Uncategorized Assignment-helpWhat value of life should be used in the analysis? Normally, we would do the equivalent of trying to compute for each traveler what is the willingness to pay for a 50% reduction in the chance of death by driving (from 2 in 1000 to 1 in 1000) and multiply that by the 1000 people whose chance of dying is reduced. An alternative approach is to figure out the willingness to pay for the driver whose life is saved. So how much would you pay to avoid dying (with certainty) (i.e. what is your Willingness to Pay)?