CHAPTER 11 Preference and Attitudes: The Softer Side of Measurement
LEARNING OBJECTIVES
- Describe why “value” measurements are necessarily subjective and the difference between stated and revealed preferences.
- Describe four major categories of survey questions as well as five tips for avoiding response bias.
- Explain how “willingness to pay” and “Value of a Statistical Life” can be used for measuring value.
- Explain what is problematic about moral arguments against the quantitative valuation of life.
- Describe how investment boundaries can be used to quantify risk tolerance.
- Describe how utility curves can be used for quantifying subjective trade-offs.
- Explain the advantages of profit maximization versus purely subjective trade-offs.
CHAPTER OVERVIEW
Chapter NaN emphasizes the measurements related to subjective preferences and attitudes. Stated and revealed preferences are described, and why revealed preferences might be better indicators is discussed. There are a variety of techniques, including surveys, that are used to measure these phenomena, and guidelines for their appropriate usage are provided. It is helpful to consider valuation problems in the context of trade-offs, and the author provides a consulting example about the value of community support. Controversial measurement challenges like the quantitative valuation of life are also examined.
Investment boundaries are a helpful way to quantify your risk tolerance as a function of expected return on investment (ROI) ...
Get How to Measure Anything Workbook: Finding the Value of Intangibles in Business now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
