How to calculate the price of his life

Life-price? This is a can of economics to analyze the problem.



People often say "life is priceless", that is, infinite value of life, is beyond measure. In fact, this is

only in the abstract sense, the value of life, in reality, people often set prices for their lives. Start

with a realistic example can be seen:



Suppose there is a risk-taking activities, such as bungee jumping or skydiving, a person who is not

professionally trained to participate in the activities of one ten thousandth of the probability of death,

according to the provisions of participants can win 10,000 yuan. So know that, participants willing to take

one ten thousandth of the probability of death to win 10,000 yuan. It is estimated that he may also willing

to take one-thousandth of the probability of death to win the 100,000 yuan, willing to take the death of

one percent probability to win one million yuan, willing to take one-tenth of the probability of death to

win the 10 million yuan Finally, he even was willing to take 1/1 (100%), the probability of death to win

the 100 million yuan. Of course, in reality, he asked the amount of money won by the probability of death

may not be linear incremental relationship, but the relationship must be increased.



When faced with two options, one is to take one ten thousandth of the probability of death to win 10,000

yuan, and the other is to take 1/1 (100%), the probability of death to win the 100 million yuan, I believe

most people would choose the former After all, a life is more important than one hundred million yuan, but

the world is not no one choose the latter, especially when the amount of money rose to one billion yuan, 20

billion or more, there may be more people opt for the latter . In reality, someone has bought huge amounts

of insurance, and then committed suicide, the purpose is to write a huge amount of wealth. The insurance

and self-mutilation in order to get insurance claims on many of the examples, this self-mutilation is

equivalent to one-third of their lives ruined, one-half.



In the above example, although participation of this adventure is only one ten thousandth of the

probability of death, but the participants are still likely to die. Zai this sense, we Ke Yi Shuo, to

participate in Zhezhong adventure Huodong are actually paid to the Ziji's Sheng Ming Ding Yi Jing has a

price, this price in one ten thousandth of Si Wang Jiu Shi probability O'clock to 10 thousand yuan, in the

death of Shi Jian does happen time (100% probability of death) was 100 million yuan.



Daily life, all of us in this way, pricing for their lives. For example, suppose to go zebra killed by a

car when crossing the probability of parts per million, and take the flyover crossing the road mortality

probability is zero. You choose to walk instead of taking over the crossing may be due to the flyover

bridge needs to go more than 100 meters to go, spend 5 minutes of time and effort. This 5-minute time and

energy for the equivalent of 10 dollars for you to pay, in other words, in order to save 10 dollars (5

minutes time and energy to pay), you willing to take the probability of death per million go zebra

crossing. Infer from this that you may in fact be willing to take a 1% probability of death to win the

100,000 yuan, willing to take one-tenth of the probability of death to win one million yuan, a fifth (100%)

probability to win the 1000 death million, so you chose to walk rather than take the bridge crossing when

in fact their lives would have been to set a price that is 10 million yuan.



Similarly, the assumption that the probability of death by train is zero (for ease of comparison, assumed

to be zero), the probability of death by plane parts per million, people choose to travel by plane instead

of train primarily to save time (eg 10 hours) and in order to be more comfortable. Suppose a train to spend

hours and not comfortable for you is the equivalent of losing 1,000 yuan (1,000 yuan if you are willing to

train you will not fly), which means you would be willing to parts per million the probability of death to

win the 1000 yuan (equivalent to 10 hours and more comfortable), or the death of you willing to take 1%

probability to win 10 million yuan, taking the death of one-tenth of the probability to win 100 million

yuan, taking a one (100%), the probability of death to win 10 million. In this way, you choose to travel by

plane instead of by train, when, in fact, already set for their lives, 10 billion price. If you asked for

10,000 yuan was willing to choose to ride the train and lost 10 hours of flying time and the loss of

comfort, then you are set for their lives the price for the 10 billion yuan. For a billionaire. His request

for compensation by train may be 100 million, he set the price for his life is one trillion yuan.



For each person, when you are faced with life-threatening or death of non-zero probability of an event,

your choice is the choice of life or death.



In the abstract sense, life is priceless, but in reality there is a price, because you have to face some

choices: whether to go mountain climbing, whether to swim, whether to drive, whether to eat puffer fish

meat (probably poisoned to death) ... ... you have to set a price on his life, or high or low, depending on

your own.