georgeterzis - Using Stated Preference to Determine...

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Unformatted text preview: Using Stated Preference to Determine Consumer Surplus to TV Viewers and Radio Using Stated Preference to Determine Consumer Surplus to TV Viewers and Radio Using Stated Preference to Determine Consumer Surplus to TV Viewers and Radio Using Stated Preference to Determine Consumer Surplus to TV Viewers and Radio Listeners Listeners Listeners Listeners Dr George Terzis (MVA) Radiocommunications Conference DTI Radiocommunications Conference DTI Radiocommunications Conference DTI Radiocommunications Conference DTI Thursday 15 February 2001 Presentation Notes 1 Objectives The Radiocommunications Agency (RA) commissioned MVA, in association with Aegis, to carry out research in order to determine the consumers’ surplus accruing to TV viewers and radio listeners in the UK. In particular the RA commissioned us to use the Stated Preference (SP) method to determine the willingness to pay for viewing TV and listening to radio, where broadcasting is via radio frequencies (terrestrial and satellite, ie not cable). 2 A Brief Introduction to Stated Preference Techniques- Traditionally demand modelling using Revealed Preference (RP) analysis (data and techniques), ie choices and decisions that have actually been made in the marketplace.- With theoretical advances in econometrics, there has been great expansion in the field.- There are practical limitations to the RP approach: survey costs, difficulty in distinguishing the effects of ‘softer’ attributes, new alternatives, no-market commodities- As a consequence, there has developed in the field of market research a practice of basing demand estimates on an analysis of responses to hypothetical choices- The alternatives are presented in terms of their component attributes, which can take different values 3 A Brief Introduction to SP ctd- Introduce figure with an SP example question 4- Methodology...
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georgeterzis - Using Stated Preference to Determine...

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