The precautionary principle and the theory of choice under uncertainty

The precautionary principle in environmental policy and the theory of choice under uncertainty

The precautionary principle, presented as a guide to environmental policy decisions in the presence of uncertainty, has been the subject of vigorous debate. However, the has generally not been discussed in relation to formal theories of choice under uncertainty developed as generalizations of the expected utility model. In this paper, it is argued that a formal basis for the precautionary princ...

Rational Choice Theory: A Cultural Reconsideration

Economists have heralded the formulation of the expected utility theorem as a universal method of choice under uncertainty. In their seminal paper, Stigler and Becker (Stigler & Becker, 1977) declared that “human behavior can be explained by a generalized calculus of utility-maximizing behavior” (p.76). The universality of the rational choice theory has been widely criticized by psychologists, ...

The Effect Of Salvage Market On Strategic Technology Choice And Capacity Investment Decision Of Firm Under Demand Uncertainty

The Precautionary Principle , Knowledge Uncertainty , and Environmental Assessment

Introduction It was only recently, about fifteen years ago, that the “precautionary principle” rose to international prominence in environmental policy making. Loosely formulated, the principle states that if there is an indication that a certain activity may be harmful to humans or the environment, that activity should be abandoned. The principle provides politicians with the possibility to in...

The Precautionary Principle and Enlightened Doomsaying: RATIONAL CHOICE BEFORE THE APOCALYPSE

A LINGUISTIC PREFATORY NOTE The word “bestimmt,” in German, is fundamentally underdetermined. It can mean “festgelegt,” i.e., “determined,” “resolute”; or it can mean “gewiß,” i.e., “certain,” “sure”; or it can mean “genau,” i.e., “precise,” “specified,” “explicit.” When Werner Heisenberg chose to call his famous principle the “Unbestimmtheitsrelation,” his was a stroke of genius: thanks to the...