FORMATION OF RISK BELIEFS, JOINT PRODUCTION AND WILLINGNESS-TO-PAY TOAVOID SKIN-CANCER

This paper uses a survey of risk beliefs about skin cancer to provide new evidence on how people view risky situations. Empirical results pr esented are based on a measure of risk beliefs held at the time of the survey. Key findings are that risk beliefs about skin cancer account for factors including skin type, complexion, and sunlight exposure his tory. Also, the connection between risk beliefs and willingness to pay is explored by using reservation prices for a sun protection product. A new method for treating joint production in a household production framework is developed to support this analysis.