What does your willingness to pay for these vacations

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Reference no: EM131190555

You are trying to decide where to go on vacation.

In country A, your risk of death is 1 in 10,000, and you'd pay $6,000 to go on that vacation.

In country B, your risk of death is 1 in 20,000, and you'd pay $9,000 to go on that vacation.

Supposing that you're indifferent between these two destinations, save for the differential risk of death, what does your willingness to pay for these vacations tell you about how much you value your life?

Reference no: EM131190555

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