Advertisement

Estimating Willingness to Pay: Why and How?

  • Peter Bohm

Abstract

The main purpose of this article is to advance a set of conditions which demand-revealing mechanisms must pass in order to be politically acceptable for real-world applications and—to begin with—for real-world experiments. Without such non-laboratory experiments, real progress seems unlikely to take place in this field. So far, there are few indications that these conditions can be met with respect to the proposals made in the literature on public goods. One possible example of a mechanism that meets the “acceptability” conditions is given here. In addition, we present some comments as to why demand-revealing mechanisms constitute an important economic problem, a view which has recently been questioned.

Keywords

Public Good Public Choice Economic Incentive True Preference Divisible Good 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Bohm, P.: An approach to the problem of estimating demand for public goods. Swedish Journal of Economics, pp. 55–56, March, 1971.Google Scholar
  2. Bohm, P.: Estimating demand for public goods: An experiment. European Economic Review 3, 111–130, 1972.CrossRefGoogle Scholar
  3. Bohm, P.: Estimating access values. In Public economics and the quality of life (ed. L. Wingo & A. Evans). Baltimore, 1977.Google Scholar
  4. Clarke, E.: Multipart pricing of public goods. Public Choice 8, 19–33, 1971.Google Scholar
  5. Drèze, J. & de la Vallée Poussin, D.: A tatonnement process for public goods. RES, pp. 133–150, April 1971.Google Scholar
  6. Green, J. & Laffont, J.J.: Revelation des preferences pour les bien publics: Primière partie. École Polytechnique (mimeo), 1976.Google Scholar
  7. Groves, T. & Ledyard, J.: Optimal allocation of public goods. Econometrica, May 1977a.Google Scholar
  8. Groves, T. & Ledyard, J.: Some limitations of demand-revealing process. Public Choice XXIX–2, 107–124 and 139–143, Spring 1977a.CrossRefGoogle Scholar
  9. Groves, T. & Loeb, M.: Incentives and public inputs. J. Publ. Econ. 4, 211–226, 1975.CrossRefGoogle Scholar
  10. Johansen, L.: The theory of public goods: Misplaced emphasis? J. Publ. Econ. 7, 147–152, 1977.CrossRefGoogle Scholar
  11. Kurz, M.: An experimental approach to the determination of the demand for public goods. J. Publ. Econ. 3, 329–348, 1974.CrossRefGoogle Scholar
  12. Malinvaud, E.: A planning approach to the public good problem. Swedish Journal of Economics, pp. 96–117, March 1971.Google Scholar
  13. Newbery, D.: Comment on Kurz, op. cit., in J. Publ. Econ., November 1974.Google Scholar
  14. Samuelson, P.: The pure theory of public expenditures. Rev. Econ. Stat. 36, 387–389, 1974.CrossRefGoogle Scholar
  15. Smith, V.: An experimental comparison of three public good decision mechanisms. Scand. J. Econ. (this issue).Google Scholar
  16. Wicksell, K.: Finanztheoretische Untersuchungen and das Steuerwesen Schwedens. Jena, 1896.Google Scholar

Copyright information

© The Scandinavian Journal of Economics 1981

Authors and Affiliations

  • Peter Bohm
    • 1
  1. 1.University of StockholmStockholmSweden

Personalised recommendations