Using Stated Preference to
Determine Consumer Surplus to TV Viewers and Radio Listeners
Discussion - Dr George Terzis
Contingent valuation and stated preference
are both possible approaches to value goods and services. The context in which
the valuation is being made will determine the appropriateness of each approach.
Stated preference is more appropriate for valuations where the characteristics
of the good or service are well defined. Stated preference is also likely to mask
the purpose of the survey and hence be less susceptible to bias.
Multiple responses are obtained from the same individual when the researcher uses
stated preference. A correction should be made for this since the observations
are not independent. There are several ways to do this including the jack-knife
and the methods advocated by White and Train.
