PT  - JOURNAL ARTICLE
AU  - Zack Dorner
AU  - Daniel A. Brent
AU  - Anke Leroux
TI  - Preferences for Intrinsically Risky Attributes
AID  - 10.3368/le.95.4.494
DP  - 2019 Nov 01
TA  - Land Economics
PG  - 494--514
VI  - 95
IP  - 4
4099  - http://le.uwpress.org/content/95/4/494.short
4100  - http://le.uwpress.org/content/95/4/494.full
SO  - Land Econ2019 Nov 01; 95
AB  - Incentivized experiments and stated preference methods are commonly viewed as substitutes in preference elicitation. We leverage the distinct strengths of each approach by combining a fully incentivized risk experiment with a stated preference survey to model utility for intrinsically risky attributes. A door-to-door survey of 981 participants in a drought-prone region elicits preferences for alternative sources of municipal water, conditional on water price and quality. Participants’ observed and imputed risk attitudes are incorporated into preference estimation. Our results are consistent with the hypothesis that participants are concerned about water supply risk, but not about new technology risk. (JEL C51, D81)