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Improving Institutions of Risk Management: Uncertain Causality and Judicial Review of Regulations

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Causal Analytics for Applied Risk Analysis

Part of the book series: International Series in Operations Research & Management Science ((ISOR,volume 270))

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Abstract

This chapter continues to consider questions of applied benefit-cost analysis and effective risk management, building on themes introduced in the previous two chapters. It expands the scope of the discussion to include a law-and-economics perspective on how different institutions—regulatory and judicial—involved in societal risk management can best work together to promote the public interest. In the interests of making the exposition relatively self-contained, we briefly recapitulate distinctions among types of causality and principles of causal inference that are discussed in more detail in Chap. 2, as well as principles of benefit-cost analysis and risk psychology, including heuristics and biases, from Chap. 10. In this chapter, however, the focus is less on individual, group, or organizational decision-making than on how rigorous judicial review of causal reasoning might improve regulatory risk assessment and policy.

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Authors and Affiliations

  1. Cox Associates, Denver, CO, USA

    Louis Anthony Cox Jr.

  2. Cox Associates, Littleton, CO, USA

    Douglas A. Popken

  3. Cox Associates, East Brunswick, NJ, USA

    Richard X. Sun

Authors
  1. Louis Anthony Cox Jr.
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  2. Douglas A. Popken
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  3. Richard X. Sun
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Cox Jr., L.A., Popken, D.A., Sun, R.X. (2018). Improving Institutions of Risk Management: Uncertain Causality and Judicial Review of Regulations. In: Causal Analytics for Applied Risk Analysis. International Series in Operations Research & Management Science, vol 270. Springer, Cham. https://doi.org/10.1007/978-3-319-78242-3_14

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