PRECAUTIONARY PRINCIPLE AND ATTITUDINAL DECISION MAKING

Abstract

We discuss the precautionary principle and decision making with consideration of the attitudinal disposition or bias of the decision maker. First, we review several applications where the precautionary principle applies and conclude that applying it in its strongest form implies a highly risk averse decision maker. The value of additional information is determined and is dependent on the bias of the decision maker. We present a methodology for the selection of strategies that incorporates sensitivity analysis of the decision maker’s attitude.