The Preferred Valuation Methodology Again: Option Values and ‘PIP’Goods
As chapter 7 has already indicated there appear to be two elements involved in reducing risk and in the values to be placed on such reductions. Let us call these two elements R i and R ii• R i is concerned solely with risk reduction per se. It is that element associated with a reduction in risk of death which is not related to fear or anxiety but solely to the loss associated with death.
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