Christian Gollier
How can we decide whether a risk is acceptable to society? Using the language of cost-benefit analysis, we can say that the risk is acceptable if its benefits to society exceed its costs. But to say this is merely to re-state the problem, for by assumption the benefits and costs are uncertain. Where these benefits and costs have known probabilities, and where individuals can diversify … [ Read more ]
Content: Quotation | Author: Christian Gollier | Source: European Business Forum (EBF) | Subject: Risk Management