(Non-market) Valuation methods – Willingness to Pay (WTP) or contingent valuation

[SOURCE: York Health Economics Consortium (2016) Willingness-to-Pay. York Health Economics Consortium. (The website can be accessed here)]

Willingness-to-pay (WTP) is the valuation of health benefit in monetary terms, often so that this can be used in a cost-benefit analysis. The term WTP may also refer to survey techniques used to derive WTP valuations. However, in many health care system patients do not make direct purchasing choices for much of their care, and so WTP are not frequently used except in certain situations (e.g. waiting times, access arrangements to care, types of care usually obtained through direct payment) where monetary valuations may be more straightforward to make.

 Back to List of Terms

NIHR School for
Social Care Research