(1) On whether social desirability bias is an issue for VSL. My understanding is that the economics literature isnāt concerned about this (nor was IDinsight, per the report) - which makes sense to me, because when people are asked to pay to avert small risks, they consider it a pragmatic decision rather than an explicitly moral one where they have to decide whether or not to let someone die for more money. The issue is hence less salient from a moral point of view, and less likely to trigger worries about how one appears to others (kind and compassionate, or cold and selfish). Just think of how much less salient refusing to pay to install a lifebuoy next to a pond is, vs refusing to jump in to save a drowning child right now, even if statistically the former nets out in expected value to the latter.
(2) If we think that both VSL and the community perspective are flawed attempts at getting the true value, and that both are downward biased (per the reasons discussed), then the higher SBD-corrected community perspective is probably a lower bound. In fact, my main worry is that there is significant downward biasāgiven the strong and very cogent moral reasoning expressed by respondents in the qualitative side of the survey (ālife is pricelessā, āchildren have economic potentialā), you could easily go up by one magnitude in trade-offs (i.e. 1 life to 100,000 cash transfers to double income) and still get a significant number of people going for that.
(3) & (4) Will definitely be interested in talking to your colleague at the Dignity Initiative, and will drop you an email to discuss your potential work in replicating your preference work! Am excited about your ideas, and would be happy to contribute any way I can.
Hi Dan,
Some thoughts on the points you raised:
(1) On whether social desirability bias is an issue for VSL. My understanding is that the economics literature isnāt concerned about this (nor was IDinsight, per the report) - which makes sense to me, because when people are asked to pay to avert small risks, they consider it a pragmatic decision rather than an explicitly moral one where they have to decide whether or not to let someone die for more money. The issue is hence less salient from a moral point of view, and less likely to trigger worries about how one appears to others (kind and compassionate, or cold and selfish). Just think of how much less salient refusing to pay to install a lifebuoy next to a pond is, vs refusing to jump in to save a drowning child right now, even if statistically the former nets out in expected value to the latter.
(2) If we think that both VSL and the community perspective are flawed attempts at getting the true value, and that both are downward biased (per the reasons discussed), then the higher SBD-corrected community perspective is probably a lower bound. In fact, my main worry is that there is significant downward biasāgiven the strong and very cogent moral reasoning expressed by respondents in the qualitative side of the survey (ālife is pricelessā, āchildren have economic potentialā), you could easily go up by one magnitude in trade-offs (i.e. 1 life to 100,000 cash transfers to double income) and still get a significant number of people going for that.
(3) & (4) Will definitely be interested in talking to your colleague at the Dignity Initiative, and will drop you an email to discuss your potential work in replicating your preference work! Am excited about your ideas, and would be happy to contribute any way I can.