Citation

Bentley J, Berardino F, Bomberger E, Timmerman C. J. Transp. Res. Forum 1991; 31(2): 298-308.

Copyright

(Copyright © 1991, Transportation Research Forum)

DOI

unavailable

PMID

unavailable

Abstract

The hedonic pricing model described in this paper measures the effects of safety characteristics on the value of services provided by general aviation aircraft. In effect, the model provides information on aviators' willingness-to-pay for safety improvements. The implied estimate of the value of a statistical life is about $740,000, measured in 1986 dollars. A major conclusion is that general aviators recognize the implicit value of differences in safety performance between aircraft, and bid up the prices of safer aircraft. These findings could be used to evaluate the benefits of new regulations or investments in the airport and airway system.