Cost-Benefit Analysis Under Uncertainty
In what follows we provide a conceptually correct procedure for determining whether a risky project passes the "potential Pareto improvement" welfare criterion which forms the normative basis of cost-benefit analysis. In this approach the role of secondary markets in providing opportunities for redistributing risk is made transparent and the modifications necessary when such markets do not exist are suggested.
Graham, Daniel A. "Cost-Benefit Analysis Under Uncertainty: Reply," American Economic Review, 1984, v74(5), 1100-1102.