Stated Preferences with Survey Consequentiality and Outcome Uncertainty: A Split Sample Discrete Choice Experiment

Tensay Hadush Meles (), Razack Lokina, Erica Louis Mtenga and Julieth Julius Tibanywana
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Tensay Hadush Meles: Economic and Social Research Institute
Razack Lokina: University of Dar es Salaam
Erica Louis Mtenga: University of Dar es Salaam
Julieth Julius Tibanywana: University of Dar es Salaam

Environmental & Resource Economics, 2023, vol. 86, issue 4, No 1, 717-754

Abstract: Abstract Stated preference studies are often based on the assumptions that proposed outcomes would realize 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 incorporating uncertainty not only affects the preferences for the attribute with uncertainty (duration of power outage) but also for a choice attribute with a precautionary feature (advanced outage notification). While outcome uncertainty and an additional survey script (a formal letter from a state-owned electric utility) to strengthen consequentiality have some influence on preferences and willingness to pay (WTP) estimates for certain attributes, we do not find significant implications on overall welfare estimates.

Keywords: Stated preferences; Survey consequentiality; Outcome uncertainty; Discrete choice experiment; Power outages; Business enterprises; Tanzania (search for similar items in EconPapers)
JEL-codes: D22 D81 L94 Q58 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s10640-023-00810-5

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