Encyclopedia of Public Health

2008 Edition
| Editors: Wilhelm Kirch

Revealed Preferences

Reference work entry
DOI: https://doi.org/10.1007/978-1-4020-5614-7_3024

Definition

The revealed preferences approach is an indirect determination of the  willingness to pay by observing the behavior of individuals and estimating the willingness to pay for a specific health care service by observed choices in other but comparable contexts. Revealed preferences have a strong foundation in the utility theory. The results of revealed preference measurements can be used as outcome measure in a cost-benefit analysis.

Copyright information

© Springer-Verlag 2008