Contingent Valuation

Definition

Health Economics

  • Contingent valuation is so called because it is a survey method for eliciting valuations of goods or services by which individuals are asked to state their maximum willingness to pay or the minimum willingness to accept going without, contingent on a specific hypothetical scenario (like making a market purchase) and a description of options available. It is also known as the stated preferenc e method, because the method asks people to state their values directly (and hypothetically), rather than inferring revealed preference values from actual choices. A related procedure that depends more on inferring values from the characteristics of services is conjoint analysis. Costs are rarely compared with the value of effects.
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