FECHNER'S LAW AND THE VALUE OF STATISTICAL LIFE

Applying the contingent valuation method to value changes in traffic accident fatality risk has been criticized on the ground that people cannot understand changes in low levels of risk. This paper proposes an indirect way of testing subject comprehension of valuation tasks in contingent valuation surveys. It is hypothesized that answers to properly understood valuation tasks are based on an implicit logarithmic valuation function (Fechner's Law). If valuation tasks have not been understood, answers will be arbitrary and not display the systematic pattern implied by Fechner's Law. Evidence from eight contingent valuation studies is examined and found to be broadly consistent with Fechner's Law. While this finding indicates that valuation tasks were understood, it does not imply that subjects in general understand absolute levels of risk correctly.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/03476049
• Corporate Authors:

  PTRC Education and Research Services Limited

  Glenthorne House, Hammersmith Grove
  London W6OL9,   England 
• Authors:
  • Elvik, R
• Conference:
  • Proceedings of the Conference: Road Safety in Europe and Strategic Highway Research Program (SHRP)
  • Location: Prague, Czech Republic
  • Date: 1995-9-20 to 1995-9-22
• Publication Date: 1996-3

Language

• English

Media Info

• Features: Figures; References; Tables;
• Pagination: p. 88-106
• Serial:
  • VTI Conferens
  • Publisher: Swedish National Road and Transport Research Institute (VTI)
  • ISSN: 0347-6049

Subject/Index Terms

• TRT Terms: Contingency planning; Crash analysis; Data collection; Statistical analysis; Surveys; Task analysis; Traffic crashes; Valuation
• Old TRIS Terms: Contingency
• Subject Areas: Data and Information Technology; Finance; Highways; Safety and Human Factors; I83: Accidents and the Human Factor;

Filing Info

• Accession Number: 00723242
• Record Type: Publication
• Report/Paper Numbers: No. 4A, Part 2
• Files: TRIS
• Created Date: Jul 8 1996 12:00AM