Question: You are trying to decide where to go on vacation

You are trying to decide where to go on vacation. In country A, your risk of death is 1in 10,000, and you’d pay $6,000 to go on that vacation. In country B, your risk of deaths 1 in 20,000, and you’d pay $9,000 to go on that vacation. Supposing that you’re indifferent between these two destinations, save for the differential risk of death, what does your willingness to pay for these vacations tell you about how much you value your life?

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  • CreatedApril 25, 2015
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