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Willingness To Accept
In economics, willingness to accept (WTA) is the minimum monetary amount that а person is willing to accept to sell a good or service, or to bear a negative externality, such as pollution. This is in contrast to ''willingness to pay'' (''WTP''), which is the maximum amount of money a consumer (a ''buyer'') is willing to sacrifice to purchase a good/service or avoid something undesirable. The price of any transaction will thus be any point between a buyer's willingness to pay and a seller's willingness to accept; the net difference is the ''economic surplus''. Several methods exist to measure consumer willingness to accept payment. These methods can be differentiated by whether they measure consumers' hypothetical or actual willingness to accept, and whether they measure it directly or indirectly. Choice modelling techniques may be used to estimate the value of WTA through a choice experiment. Contingent Value techniques are also common and directly ask respondents what they wou ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economics
Economics () is the social science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behaviour and interactions of Agent (economics), economic agents and how economy, economies work. Microeconomics analyzes what's viewed as basic elements in the economy, including individual agents and market (economics), markets, their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyzes the economy as a system where production, consumption, saving, and investment interact, and factors affecting it: employment of the resources of labour, capital, and land, currency inflation, economic growth, and public policies that have impact on glossary of economics, these elements. Other broad distinctions within economics include those between positive economics, desc ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Daniel Kahneman
Daniel Kahneman (; he, דניאל כהנמן; born March 5, 1934) is an Israeli-American psychologist and economist notable for his work on the psychology of judgment and decision-making, as well as behavioral economics, for which he was awarded the 2002 Nobel Memorial Prize in Economic Sciences (shared with Vernon L. Smith). His empirical findings challenge the assumption of human rationality prevailing in modern economic theory. With Amos Tversky and others, Kahneman established a cognitive basis for common human errors that arise from heuristics and biases, and developed prospect theory. In 2011 he was named by '' Foreign Policy'' magazine in its list of top global thinkers. In the same year his book ''Thinking, Fast and Slow'', which summarizes much of his research, was published and became a best seller. In 2015, ''The Economist'' listed him as the seventh most influential economist in the world. He is professor emeritus of psychology and public affairs at Princeton U ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Willingness To Pay
In behavioral economics, willingness to pay (WTP) is the maximum price at or below which a consumer will definitely buy one unit of a product.Varian, Hal R. (1992), Microeconomic Analysis, Vol. 3. New York: W.W. Norton. This corresponds to the standard economic view of a consumer reservation price. Some researchers, however, conceptualize WTP as a range. According to the constructive preference view, consumer willingness to pay is a context-sensitive construct; that is, a consumer's WTP for a product depends on the concrete decision context. For example, consumers tend to be willing to pay more for a soft drink in a luxury hotel resort in comparison to a beach bar or a local retail store. See also * Cost-benefit analysis * Welfare economics Welfare economics is a branch of economics that uses microeconomic techniques to evaluate well-being (welfare) at the aggregate (economy-wide) level. Attempting to apply the principles of welfare economics gives rise to the field of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Property Rights (economics)
Property rights are constructs in economics for determining how a resource or economic good is used and owned, which have developed over ancient and modern history, from Abrahamic law to Article 17 of the Universal Declaration of Human Rights. Resources can be owned by (and hence be the property of) individuals, associations, collectives, or governments. Property rights can be viewed as an attribute of an economic good. This attribute has three broad components, and is often referred to as a bundle of rights in the United States: # the right to use the good # the right to earn income from the good # the right to transfer the good to others, alter it, abandon it, or destroy it (the right to ownership cessation) Conceptualizing property in economics vs. law The fields of economics and law do not have a general consensus on conceptions of property rights. Various property types are used in law but the terminology can be seen in economic reports. Sometimes in economics, property ty ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Opportunity Cost
In microeconomic theory, the opportunity cost of a particular activity is the value or benefit given up by engaging in that activity, relative to engaging in an alternative activity. More effective it means if you chose one activity (for example, an investment) you are giving up the opportunity to do a different option. The optimal activity is the one that, net of its opportunity cost, provides the greater return compared to any other activities, net of their opportunity costs. For example, if you buy a car and use it exclusively to transport yourself, you cannot rent it out, whereas if you rent it out you cannot use it to transport yourself. If your cost of transporting yourself without the car is more than what you get for renting out the car, the optimal choice is to use the car yourself. In basic equation form, opportunity cost can be defined as: "Opportunity Cost = (returns on best Forgone Option) - (returns on Chosen Option)." The opportunity cost of mowing one’s own la ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Gains From Trade
In economics, gains from trade are the net benefits to economic agents from being allowed an increase in voluntary trading with each other. In technical terms, they are the increase of consumer surplus plus producer surplus from lower tariffs or otherwise liberalizing trade. Dynamics Gains from trade are commonly described as resulting from: * specialization in production from division of labor, economies of scale, scope, and agglomeration and relative availability of factor resources in types of output by farms, businesses, location and economies * a resulting increase in total output possibilities * trade through markets from sale of one type of output for other, more highly valued goods. Market incentives, such as reflected in prices of outputs and inputs, are theorized to attract factors of production, including labor, into activities according to comparative advantage, that is, for which they each have a low opportunity cost. The factor owners then use their ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Framing Effect
In the social sciences, framing comprises a set of concepts and theoretical perspectives on how individuals, groups, and societies organize, perceive, and communicate about reality. Framing can manifest in thought or interpersonal communication. ''Frames in thought'' consist of the mental representations, interpretations, and simplifications of reality. ''Frames in communication'' consist of the communication of frames between different actors. Framing is a key component of sociology, the study of social interaction among humans. Framing is an integral part of conveying and processing data on a daily basis. Successful framing techniques can be used to reduce the ambiguity of intangible topics by contextualizing the information in such a way that recipients can connect to what they already know. In social theory, framing is a schema of interpretation, a collection of anecdotes and stereotypes, that individuals rely on to understand and respond to events. Goffman, E. (1974). F ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Contingent Valuation
Contingent valuation is a survey-based economic technique for the valuation of non- market resources, such as environmental preservation or the impact of externalities like pollution. While these resources do give people utility, certain aspects of them do not have a market price as they are not directly sold – for example, people receive benefit from a beautiful view of a mountain, but it would be tough to value using price-based models. Contingent valuation surveys are one technique which is used to measure these aspects. Contingent valuation is often referred to as a ''stated preference'' model, in contrast to a price-based ''revealed preference'' model. Both models are utility-based. Typically the survey asks how much money people would be willing to pay (or willing to accept) to maintain the existence of (or be compensated for the loss of) an environmental feature, such as biodiversity. History Contingent valuation surveys were first proposed in theory by S.V. Ciriacy ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Dan Ariely
Dan Ariely ( he, דן אריאלי; born April 29, 1967) is an Israeli-American professor and author. He serves as a James B. Duke Professor of psychology and behavioral economics at Duke University. Ariely is the founder of the research institution The Center for Advanced Hindsight, as well as the co-founder of several companies implementing insights from behavioral science. Ariely's TED talks have been viewed over 15 million times. Ariely is the author of the three ''New York Times'' best sellers ''Predictably Irrational'', ''The Upside of Irrationality'', and '' The Honest Truth about Dishonesty'', as well as the books ''Dollars and Sense'', ''Irrationally Yours'' – a collection of his ''The Wall Street Journal'' advice column "Ask Ariely"; and ''Payoff'', a short TED book. Ariely appeared in several documentary films, including '' The Inventor: Out for Blood in Silicon Valley'' and produced and participated in '' (Dis)Honesty: The Truth About Lies''. Early life and ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Ziv Carmon
Ziv Carmon is the Dean of Research, Professor of Business Administration, and holder of The Alfred H. Heineken Chaired Professorship at INSEAD. An expert in human judgment and decision-making, he is best known for his research on placebo effects of commercial actions and on the endowment effect, and his presentations and teachings about Customer Insight. Career After working in sales and business analysis in the corporate world, he studied in the United States at University of California at Berkeley, where he received his MS in Business Administration and his PhD with a thesis entitled ''The Contingent Nature of Consumers Assessments of the Quality of Products and Services'' under the guidance of Nobel Laureate Daniel Kahneman and Itamar Simonson. Carmon began his academic career at the Duke University in 1993 as assistant professor at the Fuqua School of Business, where in 1997 he became associate professor. In 2000 he moved to France, to teach at INSEAD, and moved in 2004 to Si ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Loss Aversion
Loss aversion is the tendency to prefer avoiding losses to acquiring equivalent gains. The principle is prominent in the domain of economics. What distinguishes loss aversion from risk aversion is that the utility of a monetary payoff depends on what was previously experienced or was expected to happen. Some studies have suggested that losses are twice as powerful, psychologically, as gains. Loss aversion was first identified by Amos Tversky and Daniel Kahneman. Loss aversion implies that one who loses $100 will lose more satisfaction than the same person will gain satisfaction from a $100 windfall. In marketing, the use of trial periods and rebates tries to take advantage of the buyer's tendency to value the good more after the buyer incorporates it in the status quo. In past behavioral economics studies, users participate up until the threat of loss equals any incurred gains. Recent methods established by Botond Kőszegi and Matthew Rabin in experimental economics illustrat ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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