Journal of Risk and Uncertainty

, Volume 30, Issue 1, pp 63–97

Updating Subjective Risks in the Presence of Conflicting Information: An Application to Climate Change

Article

DOI: 10.1007/s11166-005-5833-8

Cite this article as:
Cameron, T.A. J Risk Uncertainty (2005) 30: 63. doi:10.1007/s11166-005-5833-8
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Abstract

Willingness to support public programs for risk management often depends on individual subjective risk perceptions in the face of uncertain science. As part of a larger study concerning climate change, we explore individual updated subjective risks as a function of individual priors, the nature of external information, and individual attributes. We examine several rival hypotheses about how subjective risks change in the face of new information (Bayesian updating, alarmist learning, and ambiguity aversion). The source and nature of external information, as well as its collective ambiguity, can have varying effects across the population, in terms of both expectations and uncertainty.

Keywords

risk elicitation subjective probability prior/posterior distributions ambiguity aversion Bayesian updating alarmist learning 

Copyright information

© Springer Science + Business Media, Inc. 2005

Authors and Affiliations

  1. 1.Department of EconomicsUniversity of Oregon
  2. 2.Department of EconomicsUCLA

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