RESPONSE BIAS IN A CONJOINT-ANALYSIS OF POWER OUTAGES

A methodology is proposed for estimating 'status quo effects' (resista nce to change) and 'loss aversion' (willingness to pay is less than wi llingness to accept) from consumer survey data. Conjoint data on Israe li households' attitudes to electricity outages reveal that both of th ese effects are pronounced and that they depend on the interviewees' c haracteristics. Ordered conditional legit estimation indicates that wh ile the estimates are rank sensitive the suggested methodology continu es to be applicable. Finally, the conjoint estimates are compared with those obtained by applying the method of contingent valuation. (C) 19 98 Elsevier Science B.V.