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Home - Market Failures - Conjoint Analysis - Policy Options Conjoint Analysis In order to better understand the problem and effects of acid rain in the northeastern United States, it is necessary to conduct a conjoint analysis survey that ranks different attribute changes in the northeastern portion of the United States. Conjoint analyses are used to help discover information on personal preferences. These preferences are measured by posing different scenarios to a survey group and analyzing their rankings of the given scenarios. Two different groups need to be
surveyed. The first group consists of all
midwestern citizens who are not either employees of or immediate family members of
employees of the midwestern utilities. The second group to survey is made up of those
residents employed by the pollution-causing utility plants.
By separating the two groups, it ensures that neither question in the conjoint
analysis will be answered with any bias. The other part of the conjoint questionnaire consists of the different attributes that can be applied to the given situation. In the example of acid rain in the northeast, it is helpful to look at utility prices, recreational opportunities, northeastern wildlife preservation, operating costs for utilities, and the public image of the midwestern utilities. The questionnaire is made up of three parts. Part I provides the person be surveyed with a little background information to help make them familiar with the issues at hand. It also provides definitions and rankings for the different attributes being addressed. Part II is where the scenarios are found. Question A is designed to be asked to the group made up of citizens and Question B is focused for the group consisting of employees. Part III is used to collect demographic information about the survey group. Questions of gender, age, and residence allow the surveyors to learn basic information about the group being questioned. The questions involving occupation, recreation time, and utility payment help the surveyors understand how the people from each background feel about the issues at hand. |