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Individual and household willingness to pay for public goods

Author:
Quiggin, J.
Source:
American journal of agricultural economics 1998 v.80 no.1 pp. 58-63
ISSN:
0002-9092
Subject:
households, consumer attitudes, consumer behavior, decision making, equations, mathematical models, utility functions
Abstract:
The issue of whether willingness to pay (WTP) for the benefits generated by a public good should be elicited on an individual or on a household basis is addressed. Differences between individual and household WTP may arise when members of the household are mutually altruistic. It is shown that, for general specifications of altruism, household WTP is less than the sum of household members' individual WTP. Implications for the choice between household and individual measures of WTP are considered, and issues in the elicitation of household WTP are addressed.
Agid:
1464862