Panel Paper: The Value of Resilience Information in Repeated Disaster Environments

Thursday, November 8, 2018
8228 - Lobby Level (Marriott Wardman Park)

*Names in bold indicate Presenter

Robert Greenbaum, Noah Dormady and Kim Young, The Ohio State University

This paper reports on a series of controlled human-subjects experiments on the decision of firms to invest in resilience to mitigate supply-chain disruptions, and their willingness to pay for advisory information to improve resilience planning investments, specifically strategic inventories. Of critical importance to organizations like the Department of Homeland Security (DHS) and state offices of emergency management, they find that firms make more frequent resilience investments when they are forced to pay for risk information rather than when the public sector provides it freely. Their paper is one of the first of its kind to conduct experimental analysis on CEOs and COOs of a national sample of firms for resilience research. The results inform resilience planning efforts for public- and private-sector firms and organizations, with broad implications on the use of informational policy instruments to build economic resilience.