Decision Making With Risk-Based Weather Warnings
Mu, D; Kaplan, TR; Dankers, R
Date: 30 March 2018
Journal
International Journal of Disaster Risk Reduction
Publisher
Elsevier
Publisher DOI
Abstract
We study decisions under different weather warning systems that vary in format and/or information conveyed using a laboratory experiment. Participants have to decide between a safe but costly option (spending to protect from a storm) and a risky option (of not spending for protection). We ran three treatments based upon the severe ...
We study decisions under different weather warning systems that vary in format and/or information conveyed using a laboratory experiment. Participants have to decide between a safe but costly option (spending to protect from a storm) and a risky option (of not spending for protection). We ran three treatments based upon the severe weather warning system for the UK that the Met Office has been using since 2011, using a risk matrix to communicate the impact and likelihood of an event. In Treatment 1, participants received a colored table with a check in the box of the matrix that showed the likelihood and impact level of the warning. In Treatment 2, participants only had the colored table without a check in the exact box, but with the color of the warning communicated. In Treatment 3, participants only had the color of the warning communicated without seeing the associated table. Overall our work shows that while increasing the information with content of warnings is usually beneficial and increases the trust in the warning system. it must be done with caution since better decisions (judged by higher profits) are not always made with an increase of information.
Economics
Faculty of Environment, Science and Economy
Item views 0
Full item downloads 0