Travel Risks in a Time of Terror: Judgments and Choices

Shortly after the 2002 terrorist attacks in Bali, readers of Conde Nast Traveler magazine were surveyed regarding their views on the risks of travel to various destinations. Their risk estimates were highest for Israel, and lowest for Canada. Estimates for the different destinations correlated positively with (1) one another, (2) concern over aspects of travel that can make one feel at risk (e.g., sticking out as an American), (3) worries about other travel problems (e.g., contracting an infectious disease), and (4) attitudes toward risk. Respondents' willingness to travel to a destination was predicted well by whether their estimate of its risk was above or below their general threshold for the acceptability of travel risks. Overall, the responses suggest orderly choices, based on highly uncertain judgments of risks. Worry played a significant role in these choices, even after controlling for cognitive considerations, thereby supporting the recently proposed "risk as feelings" hypothesis. Thus, even among people who have generally consistent and defensible beliefs, emotions may affect choices. These results emerged with people selected for their interest in and experience with the decision domain (travel), but challenged to incorporate a new concern (terror).     

Understanding Cumulative Risk Perception from Judgments and Choices: An Application to Flood Risks

Catastrophic events, such as floods, earthquakes, hurricanes, and tsunamis, are rare, yet the cumulative risk of each event occurring at least once over an extended time period can be substantial. In this work, we assess the perception of cumulative flood risks, how those perceptions affect the choice of insurance, and whether perceptions and choices are influenced by cumulative risk information. We find that participants' cumulative risk judgments are well represented by a bimodal distribution, with a group that severely underestimates the risk and a group that moderately overestimates it. Individuals who underestimate cumulative risks make more risk‐seeking choices compared to those who overestimate cumulative risks. Providing explicit cumulative risk information for relevant time periods, as opposed to annual probabilities, is an inexpensive and effective way to improve both the perception of cumulative risk and the choices people make to protect against that risk.     

Research Synthesis Methods in an Age of Globalized Risks: Lessons from the Global Burden of Foodborne Disease Expert Elicitation

We live in an age that increasingly calls for national or regional management of global risks. This article discusses the contributions that expert elicitation can bring to efforts to manage global risks and identifies challenges faced in conducting expert elicitation at this scale. In doing so it draws on lessons learned from conducting an expert elicitation as part of the World Health Organizations (WHO) initiative to estimate the global burden of foodborne disease; a study commissioned by the Foodborne Disease Epidemiology Reference Group (FERG). Expert elicitation is designed to fill gaps in data and research using structured, transparent methods. Such gaps are a significant challenge for global risk modeling. Experience with the WHO FERG expert elicitation shows that it is feasible to conduct an expert elicitation at a global scale, but that challenges do arise, including: defining an informative, yet feasible geographical structure for the elicitation; defining what constitutes expertise in a global setting; structuring international, multidisciplinary expert panels; and managing demands on experts’ time in the elicitation. This article was written as part of a workshop, “Methods for Research Synthesis: A Cross‐Disciplinary Approach” held at the Harvard Center for Risk Analysis on October 13, 2013.     

Understanding Public Perceptions of Benefits and Risks of Childhood Vaccinations in the United States

In the face of a growing public health concern accompanying the reemerging threat of preventable diseases, this research seeks mainly to explain variations in the perceived benefits and risks of vaccinations among the general public in the United States. As Mary Douglas and Aaron Wildavsky's grid‐group cultural theory of risk perception claims, the analytical results based upon original data from a nationwide Internet survey of 1,213 American adults conducted in 2010 suggest that individuals’ cultural predispositions contribute to the formation of their perceptions pertaining to vaccine benefits and risks at both societal and individual levels, in conjunction with other factors suggested by previous risk perception literature, such as perceived prevalence of diseases, trust, knowledge level, and demographic characteristics. Those with a strong hierarch orientation tend to envision greater benefits and lesser risks and conceive of a relatively high ratio of benefit to risk when compared to other cultural types. By contrast, those with a strong fatalist tendency are inclined to emphasize risks and downplay benefits while conceiving of a low vaccination benefit‐risk ratio. Situated between hierarchs and fatalists, strong egalitarians are prone to perceive greater benefits, smaller risks, and a more positive benefit‐risk ratio than strong individualists.     

Risk Decision Making in Operational Safety Management– Experience from the Nordic Benchmark Study

Technical Research Centre of Finland (VTT) and Studsvik AB, Sweden, have simulated decision making of the Swedish Nuclear Power Inspectorate and a power company by applying decision models in a benchmark study. Based on the experience from the benchmark study, a decision analysis framework to be used in safety related problems is outlined. By this framework both the power companies and the safety authorities could be provided with a more rigorous, systematic approach in their decision making. A decision analytic approach provides a structure for identifying the information requirements of the problem solving. Thus it could serve as a discussion forum between the authorities and the utilities. In this context, probabilistic safety assessment (PSA) has a crucial role of expressing the plant safety status in terms of reactor core damage accident probability and of risk contributions from various accident precursors. However, a decision under uncertainty should not be based solely on probabilities, particularly when the event in question is a rare one and its probability of occurrence is estimated by means of different kinds of approximations.     

Screening alternatives graphically by an extended case-based distance approach

Screening is a helpful process of multiple criteria decision aid (MCDA) to reduce a larger set of alternatives into a smaller one containing the best alternatives; thereby, decision makers are able to concentrate on evaluating alternatives within a smaller set. Therefore, determining how to assist decision makers in screening is an important issue for MCDA. This study proposes an extended case-based distance approach incorporating the advantages of a case-based distance method, a mixed-integer programming approach of discriminant analysis, and a multidimensional scaling technique to help decision makers screen alternatives visually in MCDA. The proposed approach can screen alternatives by evaluating sets of cases selected by decision makers, providing visual aids to observe decision context, reducing the number of misclassifications, and improving multiple solution problems. An interactive screening procedure is also developed to provide flexibility so that decision makers can check and adjust screening results iteratively.     

BOCOG's outsourcing contracts: The vendor's perspective

To date, most research on outsourcing is modeled from the client's perspective. In this paper, we approach the Beijing Organizing Committee for the Games of the XXIX Olympiad (BOCOG) outsourcing contracts from the vendors’ perspective. Since a vendor always has the option to accept or not accept an outsourcing contract, we use the theory of options to analyze the vendor's decision making, i.e., the trigger point, which coincides with the optimal profit level, of the vendor's decision to pursue an outsourcing contract. Numerical examples are presented to demonstrate the model and its potential benefits for vendors’ decision making.     

Understanding and Reducing Inconsistency in Seatbelt‐Use Decisions: Findings from a Cardinal Decision Issue Perspective

This article has two aims. The first is to present results that partly explain why some automobile drivers choose to use their seatbelts only part time, thereby exposing themselves to unnecessary risk. The second is to offer and illustrate the “cardinal decision issue perspective”⁽¹⁾ as a tool for guiding research and development efforts that focus on complex real‐life decision behaviors that can entail wide varieties of risk, including but not limited to inconsistent seatbelt use. Each of 24 young male participants drove an instrumented vehicle equipped to record continuously seatbelt use as well as other driving data. After all trips were finished, each participant completed an interview designed to reconstruct how he made randomly selected seatbelt‐use decisions under specified conditions. The interview also examined whether and how drivers established “decision policies” regarding seatbelt use. Such policies were good predictors of inconsistent seatbelt use. Drivers who had previously adopted policies calling for consistent seatbelt use were significantly more likely than others to actually drive belted. Meta‐decisions about seatbelt policy adoption appeared to rest on factors such as whether the driver had ever been asked to consider selecting a policy. Whether a driver made an ad hoc, on‐the‐spot seatbelt‐use decision was associated with a perceived need to make such a decision. Finally, participants with full‐time policies were especially likely to deploy their seatbelts by default, without recognizing the need to decide about belt use on a trip‐by‐trip basis. We end with recommendations for reducing inconsistencies in seatbelt use in actual practice.     

Communicating Food Risks in an Era of Growing Public Distrust: Three Case Studies

The communication and regulation of risk has changed significantly over the past 30 years in Europe and to a noticeable but lesser extent in the United States. In Europe, this is partly due to a series of regulatory mishaps, ranging from mad cow disease in the United Kingdom to contamination of the blood supply in France. In the United States, general public confidence in the American government has been gradually declining for more than three decades, driven by a mix of cultural and political conflicts like negative political advertising, a corrosive news media, and cuts in regulatory budgets. While the former approach is based on an objective assessment of the risk, the latter is driven more by the perception of the risk, consumer sentiment, political will, and sectoral advocacy. In this article, the author examines three U.S.‐based food case studies (acrylamide, bisphenol A, and artificial food colorings) where regulations at the local and state levels are increasingly being based on perceived risk advocacy rather than on the most effective response to the risk, be it to food safety or public health, as defined by regulatory interpretation of existing data. In the final section, the author puts forward a series of recommendations for how U.S.‐based regulators can best handle those situations where the perceived risk is markedly different from the fact‐based risk, such as strengthening the communication departments of food regulatory agencies, training officials in risk communication, and working more proactively with neutral third‐party experts.     

Intuitive Toxicology: Expert and Lay Judgments of Chemical Risks

Human beings have always been intuitive toxicologists, relying on their senses of sight, taste, and smell to detect harmful or unsafe food, water, and air. As we have come to recognize that our senses are not adequate to assess the dangers inherent in exposure to a chemical substance, we have created the sciences of toxicology and risk assessment to perform this function. Yet despite this great effort to overcome the limitations of intuitive toxicology, it has become evident that even our best scientific methods still depend heavily on extrapolations and judgments in order to infer human health risks from animal data. Many observers have acknowledged the inherent subjectivity in the assessment of chemical risks and have indicated a need to examine the subjective or intuitive elements of expert and lay risk judgments. We have begun such an examination by surveying members of the Society of Toxicology and the lay public about basic toxicological concepts, assumptions, and interpretations. Our results demonstrate large differences between toxicologists and laypeople, as well as differences between toxicologists working in industry, academia, and government. In addition, we find that toxicologists are sharply divided in their opinions about the ability to predict a chemical's effect on human health on the basis of animal studies. We argue that these results place the problems of risk communication in a new light. Although the survey identifies misconceptions that experts should clarify for the public, it also suggests that controversies over chemical risks may be fueled as much by limitations of the science of risk assessment and disagreements among experts as by public misconceptions.     

Dynamic Simulation as an Approach to Understanding Hurricane Risk Response: Insights from the Stormview Lab

This article investigates the use of dynamic laboratory simulations as a tool for studying decisions to prepare for hurricane threats. A prototype web‐based simulation named Stormview is described that allows individuals to experience the approach of a hurricane in a computer‐based environment. In Stormview participants can gather storm information through various media, hear the opinions of neighbors, and indicate intentions to take protective action. We illustrate how the ability to exert experimental control over the information viewed by participants can be used to provide insights into decision making that would be difficult to gain from field studies, such as how preparedness decisions are affected by the nature of news coverage of prior storms, how a storm's movement is depicted in graphics, and the content of word‐of‐mouth communications. Data from an initial application involving a sample of Florida residents reveal a number of unexpected findings about hurricane risk response. Participants who viewed forecast graphics, which contained track lines depicting the most likely path of the storm, for example, had higher levels of preparation than those who saw graphics that showed only uncertainty cones—even among those living far from the predicted center path. Similarly, the participants who were most likely to express worry about an approaching storm and fastest to undertake preparatory action were those who, ironically, had never experienced one. Finally, external validity is evidenced by a close rank‐order correspondence between patterns of information use revealed in the lab and that found in previous cross‐sectional field studies.     

Probabilistic Inversion in Priority Setting of Emerging Zoonoses

This article presents methodology of applying probabilistic inversion in combination with expert judgment in priority setting problem. Experts rank scenarios according to severity. A linear multi‐criteria analysis model underlying the expert preferences is posited. Using probabilistic inversion, a distribution over attribute weights is found that optimally reproduces the expert rankings. This model is validated in three ways. First, consistency of expert rankings is checked, second, a complete model fitted using all expert data is found to adequately reproduce observed expert rankings, and third, the model is fitted to subsets of the expert data and used to predict rankings in out‐of‐sample expert data.     

Public Organizational Birth and Death: Understanding the Exigencies of an African Political Environment

This research examines the application of theories of organizational birth and death in transitional and undemocratic political settings. Through the case study of the birth and death of the Ministry of Supplies and Marketing in Kenya, the author determines that theoretical explanations of organizational formation and demise do not necessarily fit a uniform profile. Under unstable and undemocratic environments, public organizations that are brought to life through decrees may also be unexpectedly vanished without following a logical and predictable cyclical sequence.

James Gardner March: Founder of organization theory,decision theorist,and advocate of sensible foolishness

James G. March helped to create organization theory and a “behavioral theory of the firm”, and he contributed very important insights about decision making and organizational learning. His articles challenge prevalent assumptions and rely on casual observation rather than systematic empiricism. His influence demonstrates the power of conceptualization and creative logic, and examples that capture the imaginations of listeners and readers.     

从商业创意出发理解创业研究的特征

创业研究的特殊性在于探讨个体活动对于商业效益的影响,其中,对于不确定性情景下如何获得商业成功的探讨是中心线索。与此相关,作为“创造性破坏”实现方式的商业创意具有关键意义;深入分析商业创意的内容与形式、功能与结构、地位与作用,能够从整体上把握创业研究的本质特征,因此,从商业创意这一范畴出发,有可能整合创业研究的理论成果,构建创业研究的理论体系。     

Retail category management: State-of-the-art review of quantitative research and software applications in assortment and shelf space management

Retail requires efficient decision support to manage increasing product proliferation and various consumer choice effects with limited shelf space. Our goal is to identify, describe and compare decision support systems for category planning. This research analyzes quantitative models and software applications in assortment and shelf space management and contributes to a more integrated modeling approach. There are difficulties commonly involved in the use of commercial software and the implementation and transfer of scientific models. Scientific decision models either focus on space-dependent demand or substitution effects, whereas software applications use simplistic rules of thumb. We show that retail assortment planning models neglect space-elastic demand and largely also ignore constraints of limited shelf space. Shelf space management streams on the other hand, mostly omit substitution effects between products when products are delisted orout-of-stock, which is the focus of consumer choice models in assortment planning. Also, the problem sizes of the models are often not relevant for realistic category sizes. Addressing these issues, this paper provides a state-of-the-art overview and research framework for integrated assortment and shelf space planning.     

Synthetic-Fuel Plants: Potential Tumor Risks to Public Health

This article quantifies potential public health risks from tumor-producing pollutants emitted from two synthetic-fuel plants (direct liquefaction--Exxon Donor Solvent: and indirect liquefaction--Lurgi Fischer-Tropsch) located at a representative site in the eastern United States. In these analyses gaseous and aqueous waste streams were characterized; exposures via inhalation, terrestrial and aquatic food chains, and drinking water supplies were modeled. Analysis suggested that emissions of "polycyclic aromatic hydrocarbons," "aromatic amines," "neutral N, O, S heterocyclics," "nitriles," and "other trace elements" pose the largest quantifiable risks to public health. Data and analysis for these pollutant categories should be refined to more accurately match compound-specific estimated exposure levels with tumorigenic potency estimates. Before these results are used for regulatory purposes, more detailed analysis for selected pollutant classes are needed, and more sophisticated aquatic exposure models must be developed. Also, differences in geographic scales among the environmental transport models used need to be rectified.     

Managing Potential Health Risks from Electric Powerlines: A Decision Analysis Caught in Controversy

Over the past 20 years, several epidemiological studies have found an association between exposure to electromagnetic fields (EMFs) and health effects, including childhood leukemia and adult brain cancer. However, experts strongly disagree about whether this association is causal and, if so, how strong it is. In this article, we examine several alternatives to reduce EMFs from sources of the California power grid, including undergrounding distribution and transmission lines and reconfiguring or rephasing lines. The alternatives were evaluated in terms of the potential health risk reduction, cost, impacts on service reliability, property values, and many other consequences. Because of the uncertainty about an EMF-health link, the main effort was to determine the sensitivity of the decisions to the probability and seriousness of an EMF hazard. User-friendly computer models were developed to allow stakeholders to change the model assumptions and parameters to analyze the impacts of their own assumptions and estimates on the decision. The analysis clearly demonstrated that only four of the many concerns raised by the stakeholders could make a difference in the decision: health risks, costs, service reliability, and property values. Whether undergrounding, moderate alternatives for EMF reduction, or no change was the best decision depended on a few key factors, including the probability that EMF exposure is a hazard, the severity of this hazard, how the EMF reduction measures are financed, and the impacts on property values. While the analysis did not resolve the EMF issues, it showed that even in the most controversial settings, a little analysis goes a long way to clarifying the issues and to focus the debate.