Estimating Willingness to Pay Estimating Willingness to Pay (WTP) for Nonmarket Goods Using (WTP) for Nonmarket Goods Using

Surveys Surveys

(Source: Exxon Valdez Oil Spill Trustee Council)

Why would economists survey?

Elements of a good (valid) Elements of a good (valid) survey?survey?

$

An An example…example…

Than here.Than here.

Source: http://news.bbc.co.uk/cbbcnews/hi/sci_tech/newsid_3304000/3304803.stm

Would you pay $20 to cancel Would you pay $20 to cancel class next Friday?class next Friday?

(If the WTP estimated from your (If the WTP estimated from your responses is high enough, class responses is high enough, class will be canceled.)will be canceled.)

Background questions:Background questions:1.What year are you in school?

2.What is your major?

3.How many other classes are you taking this semester?

4.Male or female?

Collected Responses:Collected Responses:

Estimated WTP = $20x(6/9) = $13.33