Willingness to Pay Sample Clauses

Willingness to Pay. To ensure positive demand curves, the intercepts a(T) must be positive (equivalently, we can impose second order conditions for profit maximizing which would impose similar restrictions on demand parameters). Positive demand implies that WTP for the two generics

Willingness to Pay. To ensure positive demand curves, the intercepts a(T) must be positive (equivalently, we can impose second order conditions for profit maximizing which would impose similar restrictions on demand parameters). Positive demand implies that WTP for the two generics (T ) (T ) α , α be such that α(T ) < β + γ α(T ) — α(T ), α(T ) < β + γ α(T ) — α(T ) and, α(T ) > γ γ β + γ 0 α(T ) + 1 γ β + γ α(T ). γ 1 0

Willingness to Pay. Xxxxxxxxx and Xxxxx (2014) reported that 25% of respondents were willing to pay at least $ 2,000, and 10% would be willing to pay at least $5,800 for AVs. However, the majority of respondents (54.5%) said they would not be willing to pay extra for AV technology (level 4). Xxxxxx and Xxxxxxxxx (2017) studied WTP for a different level of automation. It is evident that the majority (56.7% on average) of the respondents were willing to pay less than $100 for partial automation features (level 2). 58.7% of respondents also do not want to pay anything for full automation (level 4). For full automation, 14.4% willing to pay less than $6,000, 10.3% willing to pay $6,000–13,999, 9.3% willing to pay $14,000–25,999, and 7.3% willing to pay more than $26,000. Bansal et al. (2016) reported that 48% and 38% of respondents were willing to pay less than $2,000 for partial automation (level 3) and full automation (level 4), respectively. Interestingly, 41% of respondent were willing to use SAV more than at least once a week or entirely if they charge $1/mile. This adoption reduced to only 4% if they charge $3/mile. Xxxxxxx et al. (2017) found substantial heterogeneity in preferences for automation and estimated that the average household is willing to pay a significant amount for automation: $3,500 for partial automation and $4,900 for full automation. Table 3 presents a summary of findings focusing on WTP. Table 3 Summary of Literature on WTP Findings Detail Respondents Reference WTP Partial Automation $100 or less 56.7% Bansal et al. (2017) $2,000 or less 48% $3,500 estimated for average HH NA Xxxxxxx et al. (2017) Full Automation $0 54.5%, 58.7% Xxxxxxxxx and Xxxxx (2014), Bansal et al. (2017) $2,000 25% Xxxxxxxxx and Xxxxx (2014) $2,000 or less 38% Bansal et al. (2016) $4,900 estimated for average HH NA Xxxxxxx et al. (2017) $5,800 10% Xxxxxxxxx and Xxxxx (2014) $6,000 or less 14.4% Bansal et al. (2017) $6,000–13,999 10.3% $14,000–25,999 9.3% $26,000 or more 7.3%