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Stated preferences with survey consequentiality and outcome uncertainty: A split sample discrete choice experiment

Author

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  • Meles, Tensay Hadush

    (Economic and Social Research Institute, Ireland)

  • Lokina, Razack

    (University of Dar es Salaam)

  • Mtenga, Erica Louis

    (Georgia State University)

  • Tibanywana, Julieth Julius

    (School of Economics, University of Dar es Salaam, Tanzania)

Abstract

Stated preference studies are often based on the assumptions that proposed outcomes would be realized with certainty and respondents believe their survey responses are consequential. This paper uses split sample treatments to test whether survey consequentiality and outcome uncertainty lead to differences in welfare measures, focusing on a discrete choice experiment on improving quality of electricity supply among business enterprises in Tanzania. Our results show that while survey consequentiality and outcome uncertainty have some influence on preferences and willingness to pay (WTP) estimates for certain attributes, they do not significantly affect overall welfare estimates. The findings highlight that incorporating uncertainty and survey consequentiality into a stated preference study could improve its credibility but may not have substantial economic or statistical imp

Suggested Citation

  • Meles, Tensay Hadush & Lokina, Razack & Mtenga, Erica Louis & Tibanywana, Julieth Julius, 2023. "Stated preferences with survey consequentiality and outcome uncertainty: A split sample discrete choice experiment," EfD Discussion Paper 23-16, Environment for Development, University of Gothenburg.
    • Handle: RePEc:hhs:gunefd:2023_016
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    More about this item

    Keywords

    Stated preferences; Survey consequentiality; Outcome uncertainty; Discrete choice experiment; Power outages; Business enterprises; Tanzania;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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