Author(s): Burrows C, Brown K
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Abstract Willingness-to-pay (WTP) is grounded in welfare economics and is used to measure benefits in public decision-making. However, obtained values vary widely, differences between WTP and its obverse, willingness-to-accept, are very large, studies to validate the techniques are almost non-existent and methodologies to elicit values are underdeveloped. Major problems with WTP are discussed with emphasis on cognitive aspects of eliciting preferences and values. It is concluded that until its validity has been established, WTP must be rejected as a measure of economic value.
This article was published in Aust Health Rev
and referenced in Primary Healthcare: Open Access