O'Reilly logo

Learning from Catastrophes: Strategies for Reaction and Response by Michael Useem, Howard Kunreuther

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

5. The Five Neglects: Risks Gone Amiss

Alan Berger, Massachusetts Institute of Technology

Case Brown, Project for Reclamation Excellence (P-REX), and Clemson University

Carolyn Kousky, Resources for the Future

Richard Zeckhauser, Harvard University

Overview

The economist’s model of rational decision making in situations of risk is composed of five elements: (1) consideration of probability, (2) valuation of potential benefits and losses, (3) accurate use of (subjective) probability and statistics, (4) delineation and evaluation of all available alternatives, and (5) incorporation of all benefits and costs accruing to the decision maker.

Often, however, individuals fail to address one or more of these elements, giving rise to what we call the ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required