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Implications of a Weaker Form of Complementarity

Published online by Cambridge University Press:  19 January 2015

Jon R. Neill
Jon R. Neill*
Affiliation:
Western Michigan University
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Abstract

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When a non-market good has existence value, the assumption of weak complementarity cannot be used to determine willingness to pay for that good. However, when this assumption is weakened, it is possible to place an upper bound on marginal willingness to pay even when the non-market good has existence value, and thereby, an upper bound on willingness to pay for changes in consumption of non-market goods can be established. Moreover, this upper bound may be relatively easy to compute.

Keywords

marginal willingness to payweak complementarity

Information

Type
Article
Information
Journal of Benefit-Cost Analysis , Volume 3 , Issue 4 , 17 December 2012 , pp. 1 - 8
Copyright
Copyright © Society for Benefit-Cost Analysis 2012

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