Experimental Determination of Community Preferences for Water Quality—cost Alternatives*

This paper describes the theoretical background, methodology, and results of a small water‐pollution study conducted in a suburban Canadian community. In the study, preferences of heads of households were determined for different levels of environmental water quality and cost to the household of achieving this quality. Inferences are drawn from the preference data about the underlying individual utility functions. Implications of the study methodology and results for social decision making are discussed.