• Source: Willingness to pay

In behavioral economics, willingness to pay (WTP) is the maximum price at or below which a consumer will definitely buy one unit of a product. This corresponds to the standard economic view of a consumer reservation price. Some researchers, however, conceptualize WTP as a range.
According to the constructed preference view, consumer willingness to pay is a context-sensitive construct; that is, a consumer's WTP for a product depends on the concrete decision context. For example, consumers tend to be willing to pay more for a soft drink in a luxury hotel resort in comparison to a beach bar or a local retail store.




Experimental context


In laboratory experiments auctions are conducted, a premise of the experiment is often that "bid = WTP".




See also


Cost-benefit analysis
Welfare economics




References






Further reading

Kata Kunci Pencarian:

• Hak atas air
• Laporan Daya Saing Global
• Daftar episode Alvin and the Chipmunks
• Willingness to pay
• Hedonic damages
• Willingness to accept
• Lindahl tax
• Micromort
• Endowment effect
• Economic surplus
• Susana Mourato
• The Market for Lemons
• Value of life