Exercise: Psoriasis and eczema, answer 1

Question 1: What is meant by ‘willingness to pay’ in this context? What problems may arise in using such a measure?

Suggested answer

People are asked how much money they would be willing to pay to be free of their disease. Here, they would be asked how much they would be willing to pay each month to be free of psoriasis or eczema.

In the UK people find this difficult to answer, either reporting a small amount, refusing to give an answer or saying an infinite amount. In this Swedish sample it appears to have worked better. Another problem is that willingness to pay tends to be related to income, higher income respondents being willing to pay more.

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Last updated: 2 March, 2007.

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