actual behavior. It is unclear whether individuals can understand and give consistent answers to these types of questions, particularly when very small risks are involved. The literature in both psychology and economic shows that individuals tend to overestimate the likelihood of very low-probability event , particularly those called to one1s attention (Viscusi 1993). An individual's answer may also depend on the wording of the question.
Variations in estimates of the VSL and the use of these estimate by the
EPA and other government agencies will be discussed after the details of the
case study are presented.