Satisfaction with Water Service Delivery in South Africa - The Effect of Social Comparisons

Abstract: This Master's Thesis investigates the role of social comparisons in determining households' satisfaction with municipal water service delivery in South Africa. We use a unique balanced panel dataset for the years 2009-2011 from the General Household Surveys conducted by Statistics South Africa. Our results show a positive effect of receiving higher water service reliability relative to a provincial reference group, but a negative effect of receiving higher water service reliability relative to a reference group defined by a smaller geographical area. Hence, we find indications of rivalry among more distant others, but altruism or risk-sharing among closer neighbors. We conclude that since satisfaction with water service delivery seems to be strongly influenced by psychological and behavioral factors such as social comparisons, satisfaction surveys serve a limited purpose as a foundation for public policy.