Lecture 12 - Social RM cont

Lecture 12 - Social RM cont - Minimizing Social Cost of...

Info icon This preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
    Minimizing Social Cost of Risk Societal COR =  Σ i [TCOR ] where “i” includes all citizens in society who are  affected by a risk firms and individuals
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
    Role for Government When markets do not achieve socially optimal  risk level: Externalities (e.g. worker injury risk) Liability System Direct Regulation 
Image of page 2
    Pure Public Good Nonrival:  Once produced, no additional cost of another person  consuming it Non-excludable:   All consume it equally if it is provided Markets generally do not provide socially optimal  level of a public good
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
    Public Goods and Government RM Public Goods (e.g. health and technology risks) Environmental pollution regulation Hazardous substance regulation Pre-marketing approval of products Climate change regulation
Image of page 4
    Difficulties in Societal RM Measuring Benefits and Costs Distributional Issues Risk Trade-Offs Dealing with Uncertainty Risk Perceptions of Consumers Thursday Today
Image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
    Using Economic Policy Analysis Find each citizen’s willingness to pay for a  policy change.
Image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern