The notion of willingness to pay (WTP) and the associated compensation criteria are key
concepts in applied welfare economics . WTP measures the
income that must be taken away from a consumer after a price change to restore the consumer’s
original welfare level WTP for a specific attribute (selection criterion) and
for a particular alternative j (type of rice) can be indirectly recovered from the estimation of
individual parameters in the choice model by including price p
Agribusiness DOI 10.1002/agr
j
as one of the selection criteria