An experiment in eliciting utilities

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I'd like to try a little experiment as part of the exercise we were starting at the end of class today.

Suppose your total net worth is $1000, meaning that's the most you could possibly spend to prevent extinction of the Sumatran rhino.

Now suppose I told you that there were four different conservation scenarios that have different likelihoods of success.

Scenario A: 25% chance of success
Scenario B: 50% chance of success
Scenario C: 75% chance of success
Scenario D: 100% chance of success
Now tell me how much of your $1000 in net worth you'd be willing to invest in each of the three scenarios.

Please let me know your answers by Friday, and I'll do some illustrative calculations with your responses and share them with you a week from Monday.

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This page contains a single entry by Kent published on November 18, 2009 3:41 PM.

Another recent paper on indicator species was the previous entry in this blog.

Notes on valuation is the next entry in this blog.

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