{"title":"The Economics of External Information and Risky Behavior: A Case Study of Avalanche Forecasting and Backcountry Incidents","authors":"Perry Ferrell, Joshua C. Hall, Yang Zhou","doi":"10.1111/ajes.12617","DOIUrl":null,"url":null,"abstract":"<div>\n \n <p>Understanding risk taking is an important part of the economic analysis of human behavior. When engaging in risky behaviors, individuals rely on heuristics and external information. It is an open question as to whether external information about fluctuating risk reduces bad outcomes for risk takers. We examine this question using data from avalanche incidents in wintertime backcountry recreation. The number of people traveling in avalanche terrain in the United States has grown exponentially in the past more than 2 decades, yet major avalanche accidents have remained relatively constant. Using data from reported avalanche incidents in Colorado and Utah, this paper shows that additional avalanche forecasting services reduce dangerous incidents. A policy change in Colorado allows for a difference-in-differences estimation with neighboring forecast centers, which gives causal estimates of forecasting reducing incidents by 42% on higher danger days. This reduction may be partially offset by an increase in incidents on lowest rated danger days.</p>\n </div>","PeriodicalId":47133,"journal":{"name":"American Journal of Economics and Sociology","volume":"84 3","pages":"503-519"},"PeriodicalIF":0.9000,"publicationDate":"2025-01-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"American Journal of Economics and Sociology","FirstCategoryId":"96","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1111/ajes.12617","RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
Understanding risk taking is an important part of the economic analysis of human behavior. When engaging in risky behaviors, individuals rely on heuristics and external information. It is an open question as to whether external information about fluctuating risk reduces bad outcomes for risk takers. We examine this question using data from avalanche incidents in wintertime backcountry recreation. The number of people traveling in avalanche terrain in the United States has grown exponentially in the past more than 2 decades, yet major avalanche accidents have remained relatively constant. Using data from reported avalanche incidents in Colorado and Utah, this paper shows that additional avalanche forecasting services reduce dangerous incidents. A policy change in Colorado allows for a difference-in-differences estimation with neighboring forecast centers, which gives causal estimates of forecasting reducing incidents by 42% on higher danger days. This reduction may be partially offset by an increase in incidents on lowest rated danger days.
期刊介绍:
The American Journal of Economics and Sociology (AJES) was founded in 1941, with support from the Robert Schalkenbach Foundation, to encourage the development of transdisciplinary solutions to social problems. In the introduction to the first issue, John Dewey observed that “the hostile state of the world and the intellectual division that has been built up in so-called ‘social science,’ are … reflections and expressions of the same fundamental causes.” Dewey commended this journal for its intention to promote “synthesis in the social field.” Dewey wrote those words almost six decades after the social science associations split off from the American Historical Association in pursuit of value-free knowledge derived from specialized disciplines. Since he wrote them, academic or disciplinary specialization has become even more pronounced. Multi-disciplinary work is superficially extolled in major universities, but practices and incentives still favor highly specialized work. The result is that academia has become a bastion of analytic excellence, breaking phenomena into components for intensive investigation, but it contributes little synthetic or holistic understanding that can aid society in finding solutions to contemporary problems. Analytic work remains important, but in response to the current lop-sided emphasis on specialization, the board of AJES has decided to return to its roots by emphasizing a more integrated and practical approach to knowledge.