Citation

Viscusi WK. Econ. Lett. 1985; 17(1-2): 59-62.

Copyright

(Copyright © 1985, Elsevier Publishing)

DOI

10.1016/0165-1765(85)90127-2

PMID

unavailable

Abstract

Psychological risk perception studies have shown that individuals overassess low frequency events and underassess high frequency events. This letter develops a new test that reconciles these findings with the Bayesian learning approach frequently used in economic analysis.