Variation In Willingness To Pay Research Articles

User preference and willingness-to-pay for operation strategies that enhance safety and convenience of E-scooter sharing services

An electric scooter sharing (ESS) service offers improved convenience by providing accessibility to public transportation stations and mobility for short-distance trips. However, with the growing global popularity of ESS services, concerns related to safety and accidents have also increased. Previous studies explored the factors impacting preferences for ESS services; however, few have considered ways to enhance safety and convenience for users. Therefore, this study investigated the factors that influence people's choice of ESS service for enhancing safety and convenience. Data was collected in Seoul, Korea, and a latent class model was developed, allowing us to estimate the willingness-to-pay (WTP) of various attributes. The estimation results revealed that the “Exclusive e-scooter lane” attribute was the most preferred, followed by “provision of real-time driving information.” The WTP for “Exclusive e-scooter lane” was 47.1% above the base fare. In the estimation results of the class membership model, the preferred attributes were different depending on the class characteristics. The study further revealed variations in WTP for safety and convenience among users and non-users, as well as among non-users depending on their intent to use the ESS service. Furthermore, the proposed attributes constituted factors that affect the safety and convenience of ESS users, and that users were willing to pay an additional cost for them.

Empowering revealed preference survey with a supplementary stated preference survey: demonstration of willingness-to-pay estimation within a mode choice case

Mode choice models play a pivotal role in transport demand modelling and help transport planners, engineers and researchers with policy and infrastructure investment evaluation. Recent mode choice studies primarily use revealed preference (RP) data to reflect individuals’ true behaviour. However, this may not be the best practice, given the lack of information in RP data. This study uses a nonlinear utility specification for a multinomial logit mode choice model development using high-quality travel data collected by a GPS-based smartphone application complemented by stated preference (SP) data. The model results highlight the impact of sociodemographic variables on mode choice behaviour and individuals’ willingness-to-pay (WTP) when the model is jointly developed compared to stand-alone SP and RP models. The main message of this study is that in addition to collecting RP, which is a reliable and unbiased source of data, collecting complementary SP data is beneficial as it provides information that is not otherwise available in RP data. This may include a proper variation in the public transport cost variable as demonstrated in this study. Moreover, to better understand the travellers' behaviour regarding the trade-off between time and cost a mixed multinomial logit (MMNL) model in the willingness to pay space is developed on the SP data. capturing the unobserved heterogeneity within the estimated WTPs, the MMNL model outputs reveal a higher variation in WTP of car in-vehicle travel time compared to bus in-vehicle travel time.

해양레저융합형 해양치유 사업의 경제적 가치 평가

Purpose: The purposes of this study are to estimate the economic value of a marine healing project using the contingent valuation method (CVM) and to present the validity of investment for government and municipalities in marine sports and tourism.BR Method: In order to achieve the purpose, this study used CVM to a total of 297 residents of B Metropolitan City over the age of 20 who were able to pay taxes. Th deata were analyzed through SPSS 24.0. A binary logistic regression model was conducted with a dichotomous dependent variable, willingness to pay (WTP) and independent variables such as demographic data andn tierest, support, and awareness of the relevant policy were input in the logistic model. The economic value of marine healing project incorporating marine leisure business was also estimated by using the CVM model suggested by previous studies.BR Results: The following main results were derived from this study. Firts, the logistic regression mode l for analyzing WTP determinants was statistically significant, Χ²(31, N=297)=79.781, p=.000. The model explained between 23.6% and 31.5% of the variation in WTP. Amogn the independent variables, education, occupation, income, and support in the policy were foundto be significant factors to WTP. Second, the amount of WTP mean was calculated as 5,167 won per person and the percentage of WTP was 52.5%. The annual economic value of the marine healing project was eismt ated at KRW 41.948 billion. For nonpayment reasons, ‘No thought’ was most frequently mentioned, followed by ‘No financial leeway’, ‘Lack of fairness in payment’, etc.BR Conclusion: Therefore, this study shows that higher public goods value is estimated if a project is carried out in a form fused with tourism for the purpose of healthcarbe y using these marine contents rather than simply enjoying tourism.

A preference for quality: Australian general public's willingness to pay for home and residential aged care

In Australia and many other countries internationally, aged care services are provided to older people in their own homes or residential care facilities. The majority of these services are funded by the federal government using taxpayer contributions from the general public. However, the monetary value Australians place on aged care services, and the factors that predict this value, have not been examined. We, therefore, sought to determine the general public's willingness to pay (WTP) for aged care services and examine which factors influence this WTP. A cross-sectional contingent valuation survey was administered to a nationally representative cohort of 10,285 Australians between September and October 2020 from the general population aged 18 years and over. Respondents were asked to indicate their WTP values for satisfactory and high-quality aged care services to be provided in the future. A two-part regression model was used to explain what factors explained variation in WTP. In total, 80% (61%) of respondents were willing to pay to access satisfactory (high) quality home care (counterpart figures for residential care were 64% (45%)). On average, respondents were willing to pay between $126 and $158 ($145 and $237) per week to receive satisfactory-quality (high-quality) home care and between $333 and $520 ($308 and $680) per week for satisfactory-quality (high-quality) residential care. Respondents were willing to pay an additional $120 per week on average to access high-quality aged care. Higher WTP values were generally associated with being younger, male, recent experience with aged care through a close family member accessing aged care and ability to pay. These results suggest general public support for payment of individual co-contributions to access aged care services in the future.

Stated benefits from air quality improvement through urban afforestation in an arid city – A contingent valuation in Mexicali, Baja California, Mexico

Cities in drylands are expected to experience increasing challenges when it comes to air pollution. Currently, concentrations of particulate matter in these cities frequently reach dangerous levels. Urban afforestation represents an alternative to increase human health in arid cities via air-filtering and dry deposition. By simulating a non-existing market through a contingent valuation protocol, this study estimates the willingness to contribute monetarily to an urban afforestation scenario in Mexicali –an arid city located at the US-Mexico border. We estimate an average annual willingness to pay (WTP) of (2019) USD 88 per household. Variations in WTP are associated with the respondent’s perception of air quality and the presence of respiratory symptoms in the respondent’s household. The smallest WTP (USD 75) is reported by those perceiving poor air quality in their neighborhood and with no household members affected by respiratory symptoms. Respondents perceiving good air quality and with at least one household member facing respiratory symptoms report a WTP of USD 99. The highest WTP represents around 0.8 % of the annual household income. This WTP, when extrapolated to and aggregated over the total number of households in Mexicali, justifies the implementation of an urban afforestation program supplying 30 thousand tree seedlings annually.

SSESSMENT OF POTENTIAL AND WILLINGNESS TO PAY FOR ECO-SERVICES IN THE NATURAL BIRD PARK – CASE STUDY IN THOI BINH DISTRICT, CA MAU PROVINCE, VIET NAM

As ecotourism continues to grow in Vietnam, the potential and willingness to pay (WTP) for eco-services need to be assessed. The focus of this was in the Natural Bird Park in Bien Bach Dong commune of Thoi Binh District, Ca Mau Province. WTP estimation during the period of 2020 to 2025 shows that the choice of payment level will range from 10,000 to 25,000 VND. The pre- diction for 2026 to 2030 the prices of 20,000and 25,000 VND was chosen as the highest rates. The regression equation of stage 1 showed adjusted R2 = 0.514; which means that 51.4% of the variability of the dependent variable can be explained by the studied model. The regression results also showed that the positive impact of education level (X3), occupation (F), income (X4) on the WTP are statistically significant (p<0.05). In contrast, the related variables such as gender (D) and number of trips (X5) had an negative effect on WTP. In the stage 2, a positive interaction of independent factors such as occupation (F) and income (X4) on the WTP in the period of 2026 to 2030 was also found. Although, the independent variables of age (X1), education (X3) and number of trips (X5) had an negative effect on WTP levels (p<0.05). The adjusted R2 value was equal to 0.438 and this model explained 43.8% of the variation in WTP. The results provide a scientific basis for proposing the appropriate ecotourism solutions in Thoi Binh District, Ca Mau Province.

Willingness to Pay for Mandibular Overdentures: A Societal Perspective.

Dental services in many countries are funded out-of-pocket by patients whose acceptance of a dental treatment depends on their valuation of it. Using a willingness-to-pay (WTP) strategy, this study aimed to determine how people who do not wear dentures value the benefits of dentures retained by implants and what factors explain variations in WTP among subjects. Telephone numbers of a representative Canadian sample were obtained from a consumer database provider. Respondents completed either an internet-based or telephone survey with 3 payment scenarios: paying oneself (out-of-pocket), coverage with private health insurance, and publicly financed through additional taxes. Personal information data (e.g., age, income) were used as independent variables in regression models to assess the determinants of WTP amounts. Among 1,096 respondents, 317 participated in the survey (response rate, 28.9%). The mean WTP of participants (mean ± SD age: 41.2 ± 0.6 y; 54.3% male) who were dentate/partially edentate was $5,347 for implant overdentures. Considering a 1 in 5 chance of becoming edentate, they were willing to pay $26.93 as monthly payments for private insurance. They were also willing to pay an additional yearly tax of $103.63 to support a public program. WTP private payments increased substantially with increase in household income and dental needs. This preference study provides information to dentists, insurance companies, and policy makers on what dentate people are willing to pay for implant overdentures, whether directly or with insurance/government coverage. This study provides results of interest to many stakeholders. For clinicians, the results reveal what people are willing to pay for implant overdentures for themselves. It also provides information to employers and insurance companies on how people value having coverage for this kind of service. Furthermore, it provides public policy makers the value that people place on public funding of such treatments and how they would support a decision to publicly fund such a treatment.

The relationship between perceptions and self-paid hepatitis B vaccination: A structural equation modeling approach.

BackgroundMalaysia has a comprehensive, publicly-funded immunization program for hepatitis B (HepB) among infants, but adults must pay for the vaccine. The number of HepB carriers among adults is expected to increase in the future; therefore, we examined the impact of five constructs (cues to action, perceived barriers, perceived benefit, perceived severity, and perceived susceptibility) on adults’ willingness to pay (WTP) for HepB vaccine; secondarily, we examined the association between perceived barriers and perceived benefits.MethodsAdults were selected through a stratified, two-stage cluster community sample in Selangor, Malaysia. The reliability, convergent validity, and discriminant validity of the measurement model were assessed before implementing a partial least squares structural equation model (PLS-SEM) to evaluate the significance of the structural paths.ResultsA total of 728 participants were enrolled. The five constructs all showed adequate internal reliability, convergent validity, and discriminant validity. There was a significant, positive relationship to WTP from constructs (perceived barriers [Path coefficient (β) = 0.082, P = 0.036], perceived susceptibility [β = 0.214, P<0.001], and cues to action [β = 0.166, P<0.001]), and the model all together accounted for 8.8% of the variation in WTP. There was a significant, negative relationship between perceived barriers and perceived benefit [β = -0.261, P<0.001], which accounted for 6.8% of variation in perceived benefit.ConclusionsPolicy and programs should be targeted that can modify individuals’ thoughts about disease risk, their obstacles in obtaining the preventive action, and their readiness to obtain a vaccine. Such programs include educational materials about disease risk and clinic visits that can pair HepB screening and vaccination.

Exploring heterogeneity in willingness to pay for the attributes of higher education institutions

We provide an in-depth analysis of the extent and nature of heterogeneity in willingness-to-pay (WTP) for the attributes of higher education institutions (HEIs). Using data from Ireland, mixed logit and generalized multinomial logit models are used to examine heterogeneity in WTP by region, academic ability, and socio-economic status. The analysis shows that regional variation in WTP for the attributes of HEIs is substantial, which suggests that preferences may be shaped by the characteristics of the region in which a student lives. Heterogeneity in WTP is also found based on a student’s academic ability, with higher-ability students willing to pay considerably more for a higher-quality institution compared to lower-ability students. We also find that students in the highest socio-economic group are willing to pay more for all attributes.

A multilevel analysis of the determinants of willingness to pay to prevent environmental pollution across countries

This paper discusses the extent to which individual and contextual level factors influence the likelihood of individuals’ willingness to pay (WTP) to prevent environmental pollution. A multilevel probit regression framework was set up to explain WTP to prevent environmental pollution. We use data from the World Values Survey (WVS), which contains socio-economic and socio-demographic information, and merged it with country level covariates. Compared to many previous studies, our dataset encompasses a more indepth set of individual level covariates. We find that rich people, individuals with higher education, as well as those who possess post-materialist values are more likely to be concerned about environmental pollution. This study reveals that in developed countries, 90% of country variation in WTP to prevent environmental pollution can be explained by individual characteristics. This portion reduces to 80% in the case of developing countries. An interesting feature in our study is the ability to investigate the effect of contextual factors on individuals’ willingness to contribute for the environment. We observe that both democracy and government stability reduce individuals’ intention to donate to prevent environmental damage mainly in developed countries.

CVM을 활용한 해양스포츠의 경제적 가치 평가

The purposes of this study are to estimate the economic value of marine sports using CVM and to present the validity of investment in marine sports by the government and municipalities. Also, it is to provide the fundamental data to identify ways to increase the economic value of marine sports. In order to accomplish the study purposes, the study employed a CVM survey method with a total of 409 B metropolitan city residents over 20 years old who could have the capability to pay tax. The data were analyzed through SPSS 22.0. A binary logistic regression was modeled with a dichotomous dependent variable, willingness to pay (WTP). The independent variables such as gender, age, education, income, residence, experience and interest were input in the model. The economic value of marine sports was also estimated by using a model suggested by previous studies for CVM. Accordingly, following main findings are derived from the study. First, the logistic model for examining WTP determinants was statistically significant. Χ²(16, N=409)=57.120, p=.000 Cox and Snell R² and Nagelkerke R² were reported as .169 and .226 respectively. So, the model accounted for between 16.9% and 22.6% of the variation in WTP. Among the independent variables, gender, age, income, and interest were found to be the significant factors to WTP. Second, the mean amount of WTP was calculated as 2,191 won per person and the percentage of WTP was 50.7%. The annual economic value of marine sports was estimated as 18.95 billion won and the total value was 94.75 billion won. For non-payment reasons, ‘No financial leeway’ showed the highest frequency, followed by ‘No thought’, ‘Complaint on improper payment method’ and ‘High recommended amount’.

Integrating nature-based tourism and forestry in private lands under heterogeneous visitor preferences for forest attributes

Developing nature-based tourism in private lands calls for new mechanisms to consolidate the interests of the tourism industry, visitors, and landowners. This choice experiment study elaborates on the heterogeneity of visitors’ preferences and willingness to pay (WTP) for enhanced forest amenities and ecosystem services. The survey, targeting domestic and foreign tourists visiting the Ruka-Kuusamo area in Finland, considered four attributes: landscape quality, outdoor routes, forest biodiversity, and carbon sequestration. For observed heterogeneity, the visitors were grouped by their attitudes towards forest management. Unobserved heterogeneity in visitors’ choice behaviour and WTP was examined with the latent class model. While most visitors had environmentally friendly attitudes and were willing to pay, especially for enhanced landscape quality and biodiversity, considerable heterogeneity was revealed in terms of three segments with distinctive attitudes, choice behaviour and WTP. The variation in WTP has important implications for the design of a scheme of payments for environmental management.

Economic Valuation of Improved Irrigation Water in Bahir Dar Zuria Woreda, Ethiopia

This study attempts to determine the economic value of improved irrigation water by eliciting farmers’ willingness to pay (WTP) using contingent valuation method in Bahir Dar Zuria Woreda, Ethiopia. Single bounded and double bounded dichotomous choices with a follow up open ended questions were employed. Primary data obtained from 197 randomly sampled household heads was analyzed using both descriptive statistics and Econometric models. The descriptive analysis indicates that the mean annual income of the irrigators is twice more than that of non-irrigators. In this study, Probit and Bivariate Probit models were used to measure WTP and to determine the factors that influence the variation in WTP. To identify the basic determinants of maximum WTP, the author also used Tobit model. The mean willingness to pay for the provision of improved irrigation water is found to be birr 674.5 and 579 per year/0.25 ha from the double bounded dichotomous choice and open-ended questions, respectively. Consequently, the aggregate willingness to pay for improved irrigation water supply using the double bounded dichotomous choice and open ended questions is estimated about birr 15,703,709 and 13,480,278 per year, respectively. Among the surveyed households, 99 percent have shown their willingness to pay if there is an improvement in existing irrigation water supply. Thus, the result of this study suggests that it may be a good indicator for investment to expand the current irrigation projects and introducing irrigation water pricing.

Pricing economic value of organic rice under dichotomous choice framework: an environmental perspective

In Sri Lanka, rice accounts for 25 percent of total cultivable land, and more than two million families are engaged in farming as their main occupation. Intensive paddy farming in Sri Lanka has destructive effects on land, water, animals and human. Growing organic rice rather than commercially produced rice is the environmentally healthy choice and it is a fast growing agricultural segment in Sri Lanka during recent decades. However, organic farming faces challenges such as higher management cost; the risks of learning new farming methods, a fragmented industry that is still young; higher cost of marketing the value of organic rice; and the higher cost of consumer engagement. Further, willingness to pay extra for organic products was less than anticipated. This study attempts to determine the economic value of organic rice by eliciting customers’ willingness to pay (WTP) using contingent valuation method followed by single bounded dichotomous choices. Ecoliteracy, perceived importance and demographic variables were employed as independent variables for the study. A stepwise backward binary multivariate logistic regression model was used to measure WTP and to determine the factors that influence the variation in WTP. Primary data were obtained from 1,158 local customers from 36 supermarkets in Colombo districts. The study found that majority of local sampled customers (57.5%) refused to pay any additional payment for organic rice even though it was environmentally friendly product. However, 42.5% sampled customers agreed to pay an additional payment for organic rice. As estimated parametric logistic model the mean value of WTP for green rice at higher bidding level is Rs. 126.71/kg However, that value at medium bidding level was Rs. 98.61/kg and at low bedding level it was Rs. 81.78/kg. According to the empirical results H1 and H2 were fully supported and H3 were partially supported. In conclusion, policy makers can identify the range of price increase of such organic rice without damaging the existing demand for organic rice and it is a timely need to introduce new marketing strategies to expand the market segment in organic rice in Sri Lanka.DOI: http://dx.doi.org/10.4038/kjm.v2i2.6547 Kelaniya Journal of Management Vol.2(2) 2013:1-22

Economic value of irrigation water: a case of major irrigation scheme in Sri Lanka

It is generally agreed that inefficient use of irrigation-water and poor performance of irrigation systems are critical issues; especially in the light of the apparent lack of water resources. This study attempts to determine the economic value of irrigation-water in a government properly managed irrigation project (GPMIP) by eliciting farmer’s willingness to pay (WTP) using contingent valuation method followed by single bounded dichotomous choices. A stepwise backward binary multivariate logistic regression model was used to measure WTP and to determine the factors that influence the variation in WTP. Primary data were obtained from 367 farmer households in Nagadeepa irrigation schemes in dry zone. The estimated value of irrigation water was Rs. 5,275 ($40) per hectare per season which is 8.6 percent of net income in paddy farming per hectare at present in selected irrigation scheme. Further, if farmers can increase further their household farming income by 5.9%, it is possible to cover additional cost which would be driven due to pricing irrigation water and it is not an unreachable challenge with proper irrigation services. One of the most important policy implications of this study is the possibility of restructuring the existing irrigation pricing system by taking into account the economic value of irrigation water. Such policy reform can encourage farmers to use irrigation resources efficiently by motivating improvement in water management practices and generating revenue for operation, maintenance and capital replacement and irrigation sustainability in the country. DOI: http://dx.doi.org/10.4038/jas.v9i1.6353 The Journal of Agricultural Sciences, 2014, vol.9, no1: 44-57

Quantifying Preferences for the Natural World Using Monetary and Nonmonetary Assessments of Value

Given that funds for biodiversity conservation are limited, there is a need to understand people’s preferences for its different components. To date, such preferences have largely been measured in monetary terms. However, how people value biodiversity may differ from economic theory, and there is little consensus over whether monetary metrics are always appropriate or the degree to which other methods offer alternative and complementary perspectives on value. We used a choice experiment to compare monetary amounts recreational visitors to urban green spaces were willing to pay for biodiversity enhancement (increases in species richness for birds, plants, and aquatic macroinvertebrates) with self-reported psychological gains in well-being derived from visiting the same sites. Willingness-to-pay (WTP) estimates were significant and positive, and respondents reported high gains in well-being across 3 axes derived from environmental psychology theories (reflection, attachment, continuity with past). The 2 metrics were broadly congruent. Participants with above-median self-reported well-being scores were willing to pay significantly higher amounts for enhancing species richness than those with below-median scores, regardless of taxon. The socio-economic and demographic background of participants played little role in determining either their well-being or the probability of choosing a paying option within the choice experiment. Site-level environmental characteristics were only somewhat related to WTP, but showed strong associations with self-reported well-being. Both approaches are likely to reflect a combination of the environmental properties of a site and unobserved individual preference heterogeneity for the natural world. Our results suggest that either metric will deliver mutually consistent results in an assessment of environmental preferences, although which approach is preferable depends on why one wishes to measure values for the natural world.

Pricing ecological beauty under Dichotomous choice framework: the case of Taman Negara national park in Malaysia

Taman Negara is Malaysia’s premier national park and the largest in the country covering over 4343 square kilometers (434,300 hectares) of primary forest, spans across three states Kelantan, Terengganu and Pahang - and is situated in the center of the Peninsula Malaysia. It is home to much wildlife and is a popular tourist attraction to both local and foreign tourists. This study attempts to determine the economic value of Taman Negara National Park by eliciting visitors’ willingness to pay (WTP) using contingent valuation method followed by single bounded dichotomous choices. A stepwise backward binary multivariate logistic regression model was used to measure WTP and to determine the factors that influence the variation in WTP. Primary data were obtained from 368 local and foreign visitors who have been interviewed in TN Park. The study found that both local and foreign visitors were willing to pay more than the current charges for entrance permit and nature based activities provided by TN Park. On average visitors are willing to pay for entrance permit RM 16.71 ($ 5.4) per person. The existing rate is RM 1 ($ 0.32) per person. Beside, WTP for all other activities such as fishing license, camera license, camping fee, canopy walkway and hide fee is much higher than the existing rates. The optimum pricing strategy should be a combination of policy objectives and information gathered from local and foreign visitors on WTP. In conclusion, this study can be used as a tool for revising pricing policies on TN national park in Malaysia.DOI: http://dx.doi.org/10.4038/suslj.v11i1.5888Sabaragamuwa University Journal 2012; V. 11 No. 1 pp 75-93

Estimation of Distance-Decay Functions to Account for Substitution and Spatial Heterogeneity in Stated Preference Research

In a site-selection choice experiment various hypotheses are tested related to spatial heterogeneity in willingness to pay (WTP) for environmental improvements. Spatial heterogeneity is measured through distance-decay effects, substitute sites inside and outside the experiment’s choice set, and spatial trend variables. We demonstrate that distance-decay functions differ between users and nonusers and across study sites. Also the distance to substitutes outside the choice set explains spatial variation in WTP. We show that further extending the model with spatial trend variables reveals additional spatial heterogeneity in choices. Accounting for spatial heterogeneity patterns results in significantly different WTP estimates for environmental improvements. <i>(JEL Q25, Q51)</i>

Effect of model specification on valuation of travel attributes: a case study of rural feeder service to bus stop

In willingness-to-pay (WTP) studies, stated preference (SP) data are analyzed by developing econometric models. However, the variation of WTP across different model specifications has not been studied adequately. This paper reports a comparison of various econometric models and estimated WTP values with reference to a case study of rural feeder service to bus stop. Econometric models included Multinomial Logit (MNL), Heteroskedastic Extreme Value (HEV), Nested Logit (NL), Covariance Heterogeneity Nested Logit (CHNL), and Random Parameter Logit (RPL). Various econometric models are found to be consistent and acceptable in terms of signs of coefficient estimates, statistical significance of coefficient estimates and overall goodness of fit. The WTP values are found to vary across different model specifications, although the variations are not consistent and predominant for all attributes. In the present case study, the effect of model specification is found predominant on WTP for a reduction in access walking distance. Also, RPL models accounting for deterministic heterogeneity are found superior to other econometric models such as MNL, HEV, NL, CHNL and RPL models accounting for only random heterogeneity. The work highlights the importance of model specification in WTP studies.

What Explains Willingness to Pay for Smoking-Cessation Treatments —Addiction Level, Quit-Rate Effectiveness or the Opening Bid?

Several countries have now passed laws that place limitations on where smokers may smoke. A range of smoking-cessation treatments have become available, many of which have documented increased quit rates. Population surveys show that most smokers wish to quit, and most non-smokers would prefer to reduce the prevalence of smoking in society. The strengths of these preferences, however, as measured by their willingness to pay (WTP), have not yet been investigated. This study aims to identify variables that explain variations in people's answers to WTP questions on smoking-cessation treatments. A representative sample of the Norwegian population was asked their WTP in terms of an earmarked contribution to a public smoking-cessation programme. A sub-group of daily smokers was, in addition, asked about their WTP for a hypothetical treatment that would remove their urge to smoke. The impact of variation in the question format (different opening bids) on stated WTP was compared with that of factors suggested by economic theory, such as quit-rate effectiveness, degree of addiction as measured by the 12-item Cigarette Dependence Scale (CDS-12), and degree of peer group influence as measured by the proportion of one's friends who smoke. In both programmes, the most important determinant for explaining variations in WTP was the size of the opening bid. Differences in quit-rate effectiveness did not matter for people's WTP for the smoking-cessation programme. Addiction, and having a small proportion of friends who smoke, were positively associated with smokers' WTP to quit smoking. Variations in WTP were influenced more by how the question was framed in terms of differences in opening bids, than by variables reflecting the quality (effectiveness) and need (addiction level) for the good in question. While the WTP method is theoretically attractive, the findings that outcomes in terms of different quit rates did not affect WTP, and that WTP answers can be manipulated by the chosen opening bid, should raise further doubts on the ability of this method to provide valid and reliable answers that reflect true preferences for health and healthcare.