The Price of Safety and Economic Reliability

  • Charles S. Tapiero
Part of the Springer Series in Reliability Engineering book series (RELIABILITY)


Safety, by contrast, is both a consequence and a potential source of risk which is either objective, measured in terms of the probabilities and the consequences that define risk or perceptive—reflecting a state of mind, objective or conditioned. As a result, safety assumes many and compounded forms, such as being protected from consequential events or from being exposed to something that causes a loss. Practically, the word safety is used in many contexts. It may refer to home safety and allude to protective measures taken against external and harmful events (like weather, home invasion, etc.), computer safety in the sense of cyber security or to specific elements in use (stairs, cars, food, etc.). For example, see [2, 5, 15]. By the same token, safety may be inherent to a car’s reliability and to designs constructed to prevent accidental losses (or “safe at any speed” and thereby lead to some drivers to drive recklessy).


Risk Aversion Risk Attitude Expected Profit Risk Free Rate Firm Profit 
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Copyright information

© Springer-Verlag London Limited 2011

Authors and Affiliations

  1. 1.Department of Finance and Risk EngineeringThe Polytechnic Institute of New York UniversityBrooklynNew York

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