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Lake Tana is a well-known tourist spot in northern Ethiopia that lures both domestic and foreign tourists. The lake’s value is still underrated, despite the site’s immense potential for recreation and tourism. In this study, the recreational value of Lake Tana is estimated, and the consumer characteristics associated with recreational demand are analyzed. The study employs a Zero-Truncated Poisson (ZTP) regression model for data generated by the Individual Travel Cost Method (ITCM) and draws information from 1094 on-site surveys. According to ZTP regression results, variables that are significantly and positively associated with demand for Lake Tana recreation include the monthly income and age of the visitors and their preference for other recreation destinations such as Tis-Abay and Gondar Fasiledes Royal Castle. However, respondents’ leisure time, overall cost, and residential distance from the recreational site are all negatively associated with the demand for recreation. It is also evident that Lake Tana is endowed with a wealth of attributes, ranging from natural beauty to ancient religious and cultural heritages, making the lake a highly desirable recreation destination. According to the estimation, Lake Tana has a yearly recreational value of around USD 68.5 million. However, it also demonstrates that if lake settings were to improve in quality, the value of Lake Tana would rise considerably, reaching USD 151 million. The value of sentimental attachment implies that determining Lake Tana’s recreational value is a key element in the resource’s sustainable utilization and management. To make greater use of Lake Tana’s recreational amenities, however, uncontrolled waste disposal, favorable recreation facilities, and the spread of water hyacinth should be addressed immediately. Furthermore, it is imperative to maintain the lake’s diverse attributes, as the integration of these attributes is what gives the lake its primary appeal.

Resumen: El objetivo del estudio fue valorar los beneficios económicos y sociales, a través de la estimación del excedente y la demanda de visitas turísticas, en el Complejo Arqueológico de Kuélap, en la región Amazonas, Perú. Se determinó el valor de uso, a través del método de costo de viaje individual, utilizando el modelo econométrico de Poisson. Se aplicaron encuestas a 383 turistas, entre nacionales y extranjeros y los resultados obtenidos mostraron que la variable costo de viaje presenta un valor negativo esperado de -0,07 en la demanda de visitas y es estadísticamente significativa. Dicho parámetro reflejaría una inelasticidad de la demanda de visitas, demostrando que los restos arqueológicos de Kuélap tienen escasos sustitutos en la zona norte de la Amazonía peruana. Asimismo, se estimó que para cada visitante-turista el bienestar obtenido por la visita al complejo y el excedente del consumidor fue de aproximadamente S/15,00 y para el año 2018, los 110 068 visitantes obtuvieron un bienestar en términos monetarios que representa un valor económico de 1.651.020,00 soles/año. Los resultados servirán de instrumento en la recomendación de políticas públicas para el desarrollo sostenible de áreas naturales del Perú. Abstract: The objective of this study was to determine the causes that explain the demand for sightseeing tours and the benefits obtained by the visitors-tourists in the Complejo Arqueológico de Kuélap - Amazonas, Peru. The value of use was calculated, through the individual travel cost method, using Poisson’s econometric model. Surveys were applied to 383 tourists and the results showed that the travel cost presents an expected negative value of -0,07 in the demand, and is statistically significant. This parameter would reflect an inelastic demand for sightseeing tours, which implies that there are few substitutes for the archaeological remains of Kuélap in the northern Peruvian Amazon. Likewise, it was estimated that for each visitor-tourist the welfare obtained by visiting the attraction and the consumer surplus was approximately S/15,00 and in 2018, 110 068 visitors obtained wellness in monetary terms of 1.651.020 soles/year. The results will serve as an instrument in the recommendation of public policies for the sustainable development of natural areas in Peru.

This paper studies a green manufacturer’s strategic licensing of its green technology to a brown rival under the consideration of the green manufacturer’s environmental concerns. Consumers in the market have green awareness. Adopting the green technology not only helps manufacturers to reduce carbon emissions, but also to increase market sizes. The green manufacturer can choose from three technology licensing strategies, i.e., no licensing (N), royalty licensing (R) or fixed-fee licensing (F). The equilibrium licensing strategy can be derived by comparing the respective payoff after adopting the three strategies. It is found that the green manufacturer should choose fixed-fee licensing strategy when the market size expansion effect is strong, and the competition intensity is moderate; otherwise, the green manufacturer should choose royalty licensing strategy. Furthermore, it is found that when the green manufacturer is more concerned about environmental impacts, it will be more willing to choose fixed-fee licensing strategy, rather than royalty licensing strategy. Through numerical tests, some interesting results are also found. For example, the brown manufacturer might be hurt even if the cost reduction effect of technology licensing is relatively stronger. Moreover, it is found that consumer surplus and social welfare nonmonotonically change with the substitution level. In summary, this research tries to provide some guidelines to the industry and the society on better managing green technology diffusions.

This paper analytically examines the demand for surgical masks following the recent health precautions due to coronavirus. Using a simple linear demand curve and alternatively examining the impacts of requirements that mandate (a) the wearing of masks by frontline workers; (b) suggested but not required masking by the whole public; and (c) compulsory masking by the whole public. The impacts of the different scenarios on the price elasticity of demand are determined along with the slope (or the rate of change) of elasticity. Some of these results differ when a non‐linear demand curve is considered instead. The equilibrium mask prices increase when masks are universally mandated, whereas the consumer surplus is higher when masks are recommended but not mandated. However, the ranking of consumer surplus is shown to be sensitive to the supply elasticity of masks. These considerations enable a structured means to view the demand implications of masking requirements and provide some food for policy thought.

The economic research presented in this dissertation is motivated by current issues in health economics – a science in between the fields of economics, health sciences, politics and not at least medicine. This dissertation provides theoretical and empirical analyses of the interplay of intra-firm organization, inter-firm competition, market structure and regulation. The research aims to analyze competition on health care markets, to evaluate the effects of regulation on market outcomes, to interpret the policy implications and to gather a better understanding of theoretical and empirical industrial organization in the pharmaceutical markets. The research questions addressed in the chapters of this thesis are all motivated by (recent) developments on the health economic markets and are analyzed by applying and extending different approaches of industrial organization. The second chapter theoretically analyzes the effects of the introduction of reference pricing for drugs in combination with a copayment of patients. I develop a theoretical model based on a duopoly market with vertically differentiated firms to analyze the effects of the indirect price regulation on market outcomes, the optimal level of regulation and welfare. Chapter three develops a theoretical multi-stage game combining different existing approaches of industrial organization to analyze the effects of intra-firm structures on the competitive strategies of firms in the pharmaceutical market. Firms are characterized by a mixed ownership structure with independent owners and common ownership via institutional owners. Furthermore, owners delegate all operational decisions like investments in cost-reducing activities, capacities and prices to specialized managers. Chapter four assesses the reform effects of the liberalization in 2004 of the multiple-ownership ban on the pharmacy market with respect to the retail and the labor market of pharmacists. The developed theoretical model allows firms to locate on a circular city and decide on their optimal store number given the specific characteristics of the pharmacy market. The empirical analysis, based on the predictions from the theoretical model, quantifies the impact of the reform on labor and product markets of pharmacists.

Bu çalışmada, ülkemizin ilk ve tek biyosfer rezerv alanı olan Camili Biyosfer Rezerv Alanı örneğinden hareketle, ormanların işlevlerden biri olan rekreasyon işlevinin ekonomik değerinin tahmini amaçlanmıştır. Araştırmada seyahat maliyeti yöntemi ve koşullu değer belirleme yönteminden birlikte istifade edilmiştir. Alanda rekreasyon etkinliği gerçekleştiren 96 ziyaretçi ile 2016 yılında anket çalışması gerçekleştirilmiştir. Seyahat maliyeti yöntemi bulgularına göre; ziyaretçilerin ortalama bireysel seyahat maliyeti ise 201.57 TL, bireysel tüketici rantı 697.16 TL ve toplam tüketici rantı ise 12200300 TL olarak tahmin edilmiştir. Koşullu değer belirleme yöntemi kapsamında ise ziyaretçilere rekreasyon hizmetlerine yönelik bir projeyi konu alan kuramsal senaryo sunulmuş ve buna bağlı olarak ziyaretçilerin ortalama ve toplam ödeme eğilim değerleri belirlenmeye çalışılmıştır. Buna göre alanda yürütülen rekreasyon hizmetlerinin korunması ve geliştirilmesine yönelik ortalama ödeme eğilimi 186.48 TL, toplam ödeme eğilimi ise 3263400 TL olarak tahmin edilmiştir. Sonuç olarak, kişilerin yaptıkları harcamadan daha az ödeme eğilimine sahip oldukları söylenebilir. Ayrıca alanın tanınırlığın artırılması ve yöre halkının rekreasyon faaliyetlerini çeşitlendirilebilmesi sayesinde ziyaretçi sayısı ve ziyaretçilerin alanda yaptıkları harcamalar artırılabilir ve alanın rekreasyon değeri daha da yüksek çıkabilir., In this study, it is aimed to estimate the economic value of the recreation function, as being one of forest functions, based on the example of Camili Biosphere Reserve Area, which is the first and only biosphere reserve area of Turkey. Travel cost method and contingent valuation method were used in the research. A survey was conducted with 96 visitors who performed recreational activities in the area in 2016. Based on travel cost method; the average individual travel cost is estimated as 201.57 TL, the individual consumer surplus is 697.16 TL and the total consumer surplus is 12200300 TL. In contingent valuation method, a theoretical scenario about a project for recreation services was presented to the visitors, and the average and total willingness to pay values were tried to be estimated. The average willingness to pay was estimated as 186.48 TL, and the total willingness to pay as 3263400 TL. As a result, it can be said that people are willing to pay less than they spend. In addition, by increasing the awareness and diversifying the recreational activities of the local people, the number of visitors and the expenditures made by the visitors can be increased, and thus the recreational value can be even higher.

Los Cabos, Baja California Sur, Mexico, is a reference for sportfishing (SF). In this vein, a significant number of artisanal fishers from the communities surrounding Cerralvo Island-located 215 km from Los Cabos-have opted to offer SF as a tourist service in recent years. The SF has generated unevaluated economic activity in the area. Thus, stakeholders need to know this value to improve their management decision making. Therefore, this research aimed to make a valuation of the recreation service and factors that influence the demand of SF in Cerralvo Island and surrounding areas using the indirect travel cost method (TCM). For this purpose, 275 surveys were performed at the boat ramps in nearby towns. The estimated consumer surplus (EC) was USD 1,886 per visitor. Approximately 28,864 annual recreational sportfishing trips were recorded, so the total annual surplus was USD 54,437,504. The EC outperformed other national sites and was ≈140% higher than the highest valuation made for Los Cabos, which presumably derived from the differences in costs (v. gr., fishing charter, lodging). These values suggest the opportunity for the development of this activity in the study area.

This article aimed to estimate the recreational use value of ecosystem goods and services in the Serra da Capivara National Park, located in the south of the state of Piauí, in the Northeast of Brazil, with a notable attraction of tourism based on nature, history and culture. The Travel Cost Method was used through the application of an online questionnaire for tourists who made visits to the location, whose information was collected during the month of June 2019. It was found that the profile of visitors includes, mostly, people with a higher level of schooling and income level, which rated the observation of the landscape in the viewpoints, visits to the Museum of Nature and the archaeological sites more highly. As a consensus, almost all users and non-users recognize the relevance of this natural space and are willing to pay an entrance fee, which would help in its conservation and support. The recreational use value of the Serra da Capivara National Park estimated from the Cost of Travel Method was R$ 7.1 million per year, a result that although impressive, may still be underestimated, since the estimated potential use value reached R$ 2.1 billion, confirming the importance of investments in infrastructure for the reception of visitors, as well as in environmental protection mechanisms that provide knowledge and maintenance of the ecological integrity of the Park and the economic tourism activity that it sustains. Resumo O seguinte artigo objetivou estimar o valor de uso recreativo dos bens e serviços ecossistêmicos do Parque Nacional da Serra da Capivara, localizado no Sul do estado do Piauí, região Nordeste brasileira, com uma notável atração de um turismo baseado na natureza, história e cultura. Utilizou-se o Método do Custo de Viagem por meio da aplicação de questionário online para os turistas que realizaram visitas ao local, cujas informações foram coletadas durante o mês de junho de 2019. Constatou-se que o perfil dos visitantes inclui, maiormente, pessoas com um grau de escolarização e nível de renda mais altos, os quais avaliaram com maior nota a observação de paisagem nos mirantes, visitas ao Museu da Natureza e os sítios arqueológicos. Como consenso, quase a totalidade dos usuários e dos não usuários reconhece a relevância deste espaço natural e estão dispostos a pagar por uma taxa de ingresso, a qual ajudaria na conservação e sustentação do lugar. O valor de uso recreativo do Parque Nacional da Serra da Capivara, estimado a partir do Método de Custo da Viagem, foi de R$ 7,1 milhões por ano, resultado que mesmo sendo impressionante, ainda pode estar subestimado, pois o valor de uso potencial estimado alcançou R$ 2,1 bilhões, confirmando a importância dos investimentos em infraestrutura para o receptivo, assim como em mecanismos de proteção ambiental que propiciem o conhecimento e manutenção da integridade ecológica do Parque e da atividade econômica de turismo que ele sustenta.

We evaluate the welfare effects of the Roam-Like-At-Home regulation, which drastically re-duced the price of accessing the mobile internet for EU residents when traveling abroad in the European Economic Area. Estimates from individual-level usage data suggest that consumer surplus increased by 2.77 EUR/user/travel day. A decomposition shows the heterogeneous impact of the regulation on different user segments. We estimate that around half of the gains stem from a reduction in deadweight loss, i.e., new users accessing the mobile internet. We further show that the impact of the regulation varies with usage intensity abroad and at home, by the nature of the trip (leisure vs. business), and by content type. We discuss implications for content providers and other policy areas such as net neutrality.

The ultimate goal of antitrust enforcement is to maximize the surplus consumers enjoy by enhancing production efficiency and eliminating market power. Previous literature focuses on the average net wealth effects on merging firms and their stakeholder firms and reports evidence of efficiency gains while no evidence of market power in horizontal mergers. In this paper, we examine how efficiency gains distribute between the merging firms and their customer firms. We find a significant negative relation between the combined abnormal returns on the merging firms and those on their customer firms, demonstrating a wealth transfer effect. Such a negative relation is more pronounced when market power is likely to be more intensive. On average, the merging firms gain, and their customers do not lose. Our results suggest that market power allows merging firms to withhold merger gains that would have been passed to the downstream under perfect competition and prevents customers from enjoying the whole consumer surplus. Distributive inefficiency exists in horizontal mergers.

CESifo Working Papers, 9339, ISSN:2364-1428, ISSN:1617-9595

African swine fever (ASF) is a fatal and highly infectious haemorrhagic disease that has spread to all provinces in China—the world’s largest producer and consumer of pork. Here we use an input–output model, partial equilibrium theory and a substitution indicator approach for handling missing data to develop a systematic valuation framework for assessing economic losses caused by ASF outbreaks in China between August 2018 and July 2019. We show that the total economic loss accounts for 0.78% of China’s gross domestic product in 2019, with impacts experienced in almost all economic sectors through links to the pork industry and a substantial decrease in consumer surplus. Scenario analyses demonstrate that the worst cases of pig production reduction and price increase would trigger 1.4% and 2.07% declines in gross domestic product, respectively. These findings demonstrate an urgent need for rapid ASF containment and prevention measures to avoid future outbreaks and economic declines. African swine fever has spread to all Chinese provinces, limiting pork production and trade. Outbreaks occurring between 2018 and 2019 led to economic losses in pork and related industries—but projected future outbreaks could cause greater economic impacts.

Diskriminacija cijenama je različito naplaćivanje istog proizvoda ili usluge različitim potrošačima. Klasificirana je u tri stupnja. Svaki od ta tri stupnja za primarni cilj ima zadobiti potrošačev višak. Izvedivost prvog stupnja u praksi gotovo da je nemoguća jer zahtjeva previše vremena za provođenje i nikako nije pogodno i izvedivo za velika poduzeća. Drugi stupanj je uvelike prisutan u svakodnevnici : razni programi pogodnosti i lojalnosti, količinski popusti i slično. Treći stupanj je isto tako uvelike prisutan u svakodnevnici, što je moguće vidjeti u velikom broju situacija. Primjerice, studenti i umirovljenici u autobusima plaćaju niže cijene karata nego drugi putnici. Diskriminacija cijenama nije nelegalna, odnosno dopuštena je i čak se u nekim situacijama smatra poželjnom. Sve dok ne prelazi određene granice kao što su namjerno istiskivanje konkurencije sa tržišta ili nanošenje štete kupcima. Price discrimination is the different charging of the same product or service to different consumers. It is classified into three degrees. Each of these three degrees has the primary goal of gaining consumer surplus. First-degree feasibility is nearly difficult to achieve since it takes too long to implement and is neither practical or practicable for huge corporations. The second level is prevalent in everyday life: numerous benefit and loyalty programs, quantity discounts, and so on. The third degree is also prevalent in everyday life, as seen by a variety of scenarios. Students and pensioners, for example, pay lower bus fares than other passengers. Price discrimination is not unlawful, in the sense that it is permitted and even desirable in some circumstances. As long as it does not go beyond specific parameters, such as forcing competitors out of the market or causing harm to customers.

In order to develop the biomedical industry, government subsidy of biosimilars is an incentive policy which has been used by the government. Different government subsidy strategies have an impact on drug price, consumer surplus, social welfare, the income of biosimilars enterprises and the demand of biosimilars, which have been deeply analyzed through backward induction of the dynamic game theory. The analysis shows that the price coefficient and the influence of the subsidy on demand will affect the choice of government subsidy strategies. It is concluded that under different subsidy strategies, consumer surplus, social welfare and the income of biosimilars enterprises are positively correlated with the amount of subsidy per unit product. This paper provides a decision-making basis for developing government subsidy strategies scientifically.

Significance Gross domestic product (GDP) measures production and is not meant to measure well-being. While many people nonetheless use GDP as a proxy for well-being, consumer surplus is a better measure of consumer well-being. This is increasingly true in the digital economy where many digital goods have zero price and as a result the welfare gains from these goods are not reflected in GDP or productivity statistics. We propose a way of directly measuring consumer well-being using massive online choice experiments. We find that digital goods generate a large amount of consumer welfare that is currently not captured in GDP. For example, the median Facebook user needed a compensation of around $48 to give it up for a month., Gross domestic product (GDP) and derived metrics such as productivity have been central to our understanding of economic progress and well-being. In principle, changes in consumer surplus provide a superior, and more direct, measure of changes in well-being, especially for digital goods. In practice, these alternatives have been difficult to quantify. We explore the potential of massive online choice experiments to measure consumer surplus. We illustrate this technique via several empirical examples which quantify the valuations of popular digital goods and categories. Our examples include incentive-compatible discrete-choice experiments where online and laboratory participants receive monetary compensation if and only if they forgo goods for predefined periods. For example, the median user needed a compensation of about $48 to forgo Facebook for 1 mo. Our overall analyses reveal that digital goods have created large gains in well-being that are not reflected in conventional measures of GDP and productivity. By periodically querying a large, representative sample of goods and services, including those which are not priced in existing markets, changes in consumer surplus and other new measures of well-being derived from these online choice experiments have the potential for providing cost-effective supplements to the existing national income and product accounts.

Cjenovna diskriminacija predstavlja različitu naplatu cijena kupcima. Ona se pojavljuje u tri stupnja. Bez obzira koji od tri stupnja primijenili cilj je pridobivanje potrošačevog viška. Prvi stupanj u stvarnosti je teško ostvarivo jer je potrebno poznavanje savršenih informacija za svakog pojedinačnog kupca kako bi se pridobio njegov višak. Drugi stupanj odnosi sa na ono s čime se široka masa najčešće služi a to su kartice lojalnosti, iskorištavanje bonova, popusti na količinu i slično. Kod posljednjeg stupnja cjenovne diskriminacije različita se cijena naplaćuje različitoj grupi kupaca, pa tako primjerice studenti ili umirovljenici kao potrošači s nižom platežnom moći iskorištavaju posebno definirane cijene. S pravne strane gledano svaka diskriminacija cijene nije nužno i zlouporaba jer se pomoću nje postiže efikasna tržišna utakmica. Zlouporabom se smatra kada vladajući poduzetnik iz subjektivnih razloga odluči primijeniti diskriminaciju cijena i time ugroziti svoje konkurente. Prema istraživanju cjenovne diskriminacije polovica ispitanih zbog utjecaja cjenovne diskriminacije troši više od predviđenog i na taj način svoje viškove generira kao dodatan profit poduzetnika. A model of price discrimination represents different pricing of consumers, which occurs in three degrees. The main goal is to collect consumer’s surplus. The first degree requires perfect information for each individual customer to collect consumer’s surplus. The second degree is the most common one, as it appears as loyalty cards, the use of vouchers, quantity discounts, etc. The third degree of price discrimination, reflects different prices to different groups of consumers, for example, students or retirees as consumers with lower purchasing power. According to the legal aspect, any price discrimination is not necessarily abuse because it leads to effective market competition. According to the presented study on price discrimination, half of the respondents spend more than expected due to the influence of price discrimination and generate their surpluses as an additional profit for producers.

In this paper, we investigate if an increasing competition in an oligopolistic market will enhance the real incomes and consumer surplus in the long run. For this purpose, we apply a two-sector overlapping generation model in which members of the young generation own the oligopolistic firms. We show that increasing competition in the oligopolistic market leads to ambiguous outcomes regarding the real income and consumer surplus in the long run. However, we show that the distribution of income will become fairer if the competition increases, but it is possible that the price for a fairer distribution is a lower income for all members of the economy.

Traceability regulations are a way to protect consumers by forcing firms to identify and track products step-by-step through all stages of production, processing, and distribution. Traceability is often used in conjunction with country-of-origin labelling where products explicitly identify where production takes place. However, such country-of-origin regulations can conflict with WTO provisions. This paper analyzes the impact on consumer welfare of traceability and country-of-origin in an international trading regime to assess whether such regulations actually improve consumer welfare. The paper constructs a theoretical model that highlights the potential market failure that arises from traceability. The paper then introduces a simple international trade regime to identify impacts on consumer surplus. The paper compares outcomes with, and without, traceability and country-of-origin regulations. Given the inherent free-rider problem, the paper shows that, as long as costs associated with traceability are low enough, mandatory regulations are welfare improving. Free trade, in the absence of foreign traceability, can lower consumer welfare so provides a rationale for country-of-origin rules. However, mandatory country-of-origin rules need not be welfare enhancing. We show that country-of-origin rules are similar to import barriers and so are third-best solutions. The better solution is international adoption and recognition of traceability rules which would make country-of-origin rules moot.

The current practise of cost-benefit analysis inWestern countries consists of a collectionof various incompatible ideas and methodologies to obtain replicable numbersfor the costs and benefits of major public spending plans. This paper describesthe main elements of the dominant methodology, which combines consumer andproducer surplus, price-taking, government-inputs-as-outputs, hedonic pricing ofexternalities, and the issue-specific use of partial or general equilibrium thinking.The paper then discusses how that methodology can be augmented and partiallyreplaced by looking at how prospective policies would change the total number ofWELLBYs (life satisfaction-adjusted years of life) of the population. The abilityof the WELLBY methodology to address complex externalities is illustrated by theEasterlin Discount, which is a proposed reduction factor of 75% on all estimates ofprivate consumption benefits to offset the envy caused in others.

We study the monopolistic competition model with producer-retailer-consumers two-level interaction. The industry is organized according to the Dixit–Stiglitz model. The retailer is the only monopolist. A quadratic utility function represents consumer preferences. We consider the case of the retailer's leadership; namely, we study two types of behavior: with and without the free entry condition. Earlier, we obtained the result: to increase social welfare and/or consumer surplus, the government needs to subsidize (not tax!) retailers. In the presented paper, we develop these results for the situation when the producer imposes an entrance fee for retailers.

Digital maps and navigation applications are considered an essential tool by 70% of smartphone users. As these apps come predominantly free of charge, their contribution to consumer well-being cannot be captured by the common economic measures, like the GDP. This study demonstrates how the discrete choice experiment approach can be applied to measure, in an economically consistent way, consumer surplus from a navigation service. We elicit preferences for a satellite navigation with the two optional location-based functionalities: real-time traffic information and location-sensitive commercial information. In the experiment, the respondents are confronted with a range of location-sharing conditions set by a navigation provider. Finally, we estimate a demand model and derive welfare measures from the collected choices. Median consumer surplus from using basic satellite navigation without location-based functionalities is estimated at 8.06 EUR per month. Adding location-based services can increase this gain by 36% to 10.98 EUR, provided that users maintain control over location disclosure. Location-sharing terms set by a provider and privacy concerns of users both affect the size of the surplus from a navigation service.

A nationwide recreational fishing survey in Sweden was used to estimate the benefits of recreational fishing in Sweden. The survey targeted the Swedish population and, consequently, the sample contained a large fraction of zero fishing days. To consider this, a zero-inflated Poisson model was used in the estimations. Swedes fished about 15.6 million days in 2013, of which two-thirds were spent on inland fishing, and one-third on marine and coastal fishing. Expected consumer surplus per fishing day varied with the season; SEK 193 for winter fishing, SEK 787 for summer fishing and SEK 95 for autumn fishing. Although about 70 per cent of total fishing days were spent on inland fishing, the weighted consumer surplus per fishing day in marine and coastal areas were higher. The results also demonstrated strong positive effects of increases in expected catch per day on number of fishing days demanded and consumer surplus, which have important implications for fishery policies directed at recreational fishing.

In order to improve current rail timetabling processes, the suitability of train departure times for passengers should be included in timetable assessment. To achieve this, one possibility is to calculate the change in consumer and producer surplus (i.e., the economic welfare) resulting from departure time shifts in rail timetables. However, existing methods for this calculation are quite limited. To fill this gap, we propose a new method in the current paper. This method enables comparing most scenarios involved in interregional rail timetabling in terms of economic welfare. To this end, our method takes advantage of schedule-based models that allow assessing the impact of departure time shifts on the demand and valuation of each possible route using the timetable. As a proof of concept, we illustrate this method on a case study on the busiest Swedish interregional line. This case study shows the potential of the method to deliver detailed calculations with analysis of equity effects. To conclude, the method presented in this paper improves on the current literature, and it can be used to improve timetable optimisation algorithms or to better resolve conflicts between train path requests. QC 20210113

The phenomenal rise of the platform economy has reshaped how economies operate across the world. The importance of digital platforms has never been more evident than in combatting the ongoing corona virus (Covid-19) pandemic. Even with the threat of a global recession looming large, technology companies are witnessing a surge in demand for their services. Platforms distinguish themselves from traditional markets by demonstrating speed and scale of innovation and fostering efficient and productive interaction between buyers and sellers. Enterprises using platform-based business models have expanded beyond social media, travel and entertainment to sectors like financial services, healthcare, logistics and transportation. With the objective of building evidence for policy-making in this sector, this study undertakes an in-depth analysis of the impact generated by the platform economy in India, by estimating consumer surplus from the use of platforms, analysing its impact on traditional businesses either by transformation or disruption. The estimated consumer surplus is Rs. 438.75 per individual per month, amounting to a collective annual surplus of Rs. 3620 billion for India. At current exchange rates this would amount to USD 47 billion. The growth of platforms has also been accompanied by global concern against their anticompetitive practices, the spread of fake news and harmful content, political bias, etc. The paper discusses regulatory changes and areas of concern for market competition, labour and employment, fake news and misinformation, consumer protection, counterfeit goods and data privacy in India.

International audience; Measuring consumer surplus for addicted consumers is challenging because the presence of internalities makes the observed demand schedule a biased basis to estimate the actual welfare experienced by consumers. A common practice in literature consists of using non-addicted consumers as a rational benchmark. This short contribution points out some limitations of existing approaches and provides a revised measure that satisfies desirable properties in this rational benchmark framework. Comparative estimates based on data from the Australian Productivity Commission 1999 report on gambling indicate that existing approaches lead to largely overestimate the net consumer surplus. The new measure we propose is easy to implement and could be a useful tool when it comes to assessing welfare in addictive contexts.

Do personalized offerings enabled by big data only bring economic benefits to firms but not to consumers? In this paper, we seek to address this question by examining a particular category of personalized offerings provided by algorithmic product recommendation systems. While the economic value of algorithmic product recommendations to firms is mostly understood, their benefits to consumers are not well quantified in the literature. We conduct a randomized field experiment on an apparel retailer’s website in the US to estimate the benefits of recommendations to consumers. We find that recommendations helped consumers discover lower-priced products on the website, which results in a higher probability of product purchase (lower likelihood of failed search efforts) and a lower price of purchased products. Specifically, an additional recommended product page view due to recommendations leads to a 15 percent increase in purchase probability and a $1.59 decrease in the purchase price. The product recommendations are particularly beneficial to consumers for product categories with a higher relative price dispersion and a higher proportion of niche products. Due to these benefits, consumers substitute 0.14 keyword search page views and 0.63 product category page views for each recommended product page view under recommendations. The recommendations generated a surplus of $56,631 (3.8 percent of the total sales), two-thirds of which the retailer captured as additional revenue, and the remaining one-third the consumers as price savings.

The peer-to-peer (P2P) energy trading is anchored in more efficient usage of electric power by allowing excess electric power from energy prosumers to be harnessed by other end-users. To boost the P2P energy trading, it is of pivotal significance to call on energy prosumers and end-users to actively participate in the trading while sharing information with a greater degree of freedom. In this perspective, this paper purports to implement the P2P energy trading scheme with an optimization model to assist in energy prosumers’ decisions by reckoning on hourly electric power available in the trading via the optimal energy scheduling of the energy trading and sharing system (ETS). On a purely practical level, it is assumed that all trading participants neither join the separate bidding processes nor are forced to comply with the predetermined optimal schedules for a trading period. Furthermore, this paper will be logically elaborated with reference to not only the determination of transaction price for maximizing the benefits of consumers under the different electricity rates but the establishment of additional settlement standards for bridging an imperative gap between optimally planned and actually transacted quantities of the P2P energy trading.

Pre-print (óritrýnt handrit), There is currently limited knowledge concerning the economic value of commercial whale watching from the perspective of the consumer's trip experience. This study outlines the results of an in-person contingent valuation survey, which asked whale watching tourists in Faxaflói Bay, Iceland, how much they would have been willing to pay beyond the paid ticket price. Based on a sample of 163 tourists, only 30 (18.40%) reported any consumer surplus, despite the majority stating positive satisfaction with the experience. Mean consumer surplus was 768 ISK (approximately 5.60 euros). Scaled up to the number of whale watching tourists in Faxaflói Bay in 2018 of 148,442, aggregate CS was approximately 114.0 million ISK (0.83 million euros), a 6.9% mark-up on estimated annual revenue generation derived from average ticket prices. The study provides new information on the economic value of whale watching in an area which had already been part-designated as a whale sanctuary., This paper has been funded by NordForsk (grant number 76654) via their financial support to the Nordic Centre of Excellence ARCPATH (Arctic Climate Predictions – Pathways to Resilient, Sustainable Communities). In addition, the authors would like to thank Urður Einarsdóttir, undergraduate student at the University of Iceland, for her facilitation of data collection.

In the pressure of excessive resource consumption and serious environmental pollution, governments provide various consumer subsidies to promote sales of energy-saving vehicles, including the energy-saving fuel vehicle (FV) and the pure electric vehicle (EV) in the automobile industry. Utilizing a Hotelling model, this paper explores two competing firms&rsquo, decisions on the selection of green technology innovations for vehicles, namely producing either the energy-saving FV or the pure EV, while the two vehicles are different from each other on not only the energy-saving level but also the consumer&rsquo, s acceptance. We further explore the impact of the government&rsquo, s consumer subsidy on the profits, environment, and consumer surplus. We find that the two competing firms&rsquo, equilibrium selections of green technology innovations for vehicles change as the variable manufacturing cost of the pure EV varies. In particular, when the variable manufacturing cost of the pure EV is moderate, the firm with a lower technology capacity for improving the energy-saving level of the FV (i.e., firm 2) will produce the pure EV while the other firm (i.e., firm 1) produces the energy-saving FV, and the converse is not true. In this case, the decreasing variable manufacturing cost of the pure EV will benefit firm 2 and make firm 1 lose in a competing context. In particular, both firms would charge lower retail prices as the variable manufacturing cost of the EV decreases. In addition, we find that although the consumer subsidy could reduce the purchasing cost for the consumer and promote both firms to produce higher energy-saving level vehicles, a firm can still reduce its retail price under certain conditions because of the competition between the two firms. Finally, we prove that the consumer subsidy can be always beneficial to the environment, while it may hurt the consumer surplus and the firms&rsquo, profits under certain conditions. The results provide suggestions for governments to adopt an appropriate consumer subsidy program from perspectives of the consumer, environment, and economy.

Rice is a staple food in the West African nation of Sierra Leone with little difference in consumption between poor and wealthy households. Rice production is also an important source of livelihood with half of all households, three-quarters of rural households and about two-thirds of poor households grow rice. The final price of rice in the domestic market is an important policy issue. The policy challenge is complicated by the fact that poor households, which earn the bulk of their income from rice production, also purchase rice when own production is inadequate. Under the broad assumption that money income is a reasonable measure of well-being, this paper develops a simple model of the Sierra Leone rice sector and applies procedures to determine key outcomes in terms of domestic production, imports, and exports under conditions that maximize consumer's and producer's surplus. The paper finds that the rice sector is operating at a suboptimal level. In addition, simulations suggest that an optimal policy path to balance consumer and producer welfare and meet the higher societal objective of creating jobs requires a moderate level of tariff on imported rice, combined with structural policies to improve the productivity of the sector.

The economic valuation of environmental resources is of great interest to society in general and to public managers in particular. It can promote more sustainable environmental policies, as it clearly shows the high economic value of natural resources. Thus, these valuation tools can provide useful evidence to support such policies by quantifying the economic value associated with the protection of such resources. However, there is an inherent difficulty in the implementation of methods to assess the economic valuation of environmental resources, mainly as a result of the absence of a market and hence a price that explains its social demand. However, both the travel cost method and the contingent valuation method used in this paper offer an approach to the economic values of the recreational services for wetlands. The aim is to analyze whether these values have been influenced by the economic crisis, so two time periods are compared separated for a decade. Results do not show an unequivocal influence between values in both periods, with different behaviors among natural areas, although with a certain tendency to increase in the decade being analyzed.

In much of today’s competitive marketplace, consumers have the opportunity to choose where they spend their money based on their examination of a company’s corporate social responsibility. A company’s social reputation and its promotional efforts may influence consumer choice. Sustainable development is highly regarded by governments, experts, decision-makers and managers in organizations and two-level supply chains. This supply chain includes a manufacturer (acting as leader) and a retailer (acting as follower), both of whom face demand uncertainty. In this article, the cost of advertising is considered in two ways for the manufacturer and the retailer. In the first model, the retailer determines the optimal retail price and order quantity, and the manufacturer determines the optimal wholesale price and the promotional efforts value so that their profits are maximized. In the second model, the retailer determines the optimal retail price, order quantity, and promotional efforts value, and the manufacturer determines the optimal wholesale price. We will also study the impact of promotional cost sharing on the coordination of the supply chain and the issue will be further explained with numerical examples. Therefore, in this research, the simultaneous effect of increased advertising and value consumer surplus is studied We examine cases when the retailer is a provider of promotional cost and profit, when consumer surplus is directed toward the retailer, and when both retailer and manufacturer achieve higher profits than when the manufacturer is responsible for promotional cost and profit.

The main attractions of national parks include their scenic beauty, security, wildlife and trees. For preserving and maintaining national parks, an appropriate pricing policy can be used. The current study focuses on using the travel cost method (TCM) and contingent valuation method (CVM) as a non-market valuation technique to value the National Botanical Garden in Bangladesh, a developing country where little or no previous works of this kind has been conducted before. The main objective of the paper was to suggest an appropriate entrance fee for the park by assessing the willingness to pay (WTP) from the TCM and CVM; by determining a revenue maximizing entrance fee from the CVM; and by considering socio-demographics, the characteristics of visits and the motivation of the visitors to preserve the National Botanical Garden. The study sampled 100 visitors. These visitors participated in a survey which consisted of closed questions followed by a semi structured in-depth interview. For data processing, SPSS and Microsoft Excel were used. Based on the travel cost demand function using the TCM, the study found that the amount respondents were willing to pay for entrance was 0.955 US dollars and yearly consumer surplus was 593634.5 USD. From the CVM, it was estimated that the WTP was 0.225 USD for the entrance and revenue maximizing entrance fee was 0.376 USD. Finally, the entrance fee suggested for National Botanical Garden was around 0.225 USD.

В статье приведены анализ и критика подхода к оценке вклада цифровой экономики в экономический рост с точки зрения производства и создания добавленной стоимости. Произведен анализ альтернативной методологии подсчета вклада цифровой экономики в экономический рост на основе оценки потребления – как суммы формируемых потребительских излишков в результате потребления результатов деятельности цифровой экономики., The article presents the analysis of the approach to assessing the contribution of the digital economy to economic growth from the point of view of production and added value creation. An analysis of an alternative methodology for calculating the contribution of the digital economy to economic growth based on an assessment of consumption – as a sum of generated consumer surplus, is carried out., Экономика и управление: научно-практический журнал, Выпуск 5 (155) 2020

Our study proposes a novel mechanism to reduce information asymmetry about product quality between buyers and sellers. Product testing organizations like Consumer Reports (US) and Stiftung Warentest (Germany) seek to reduce this asymmetry by providing credible information. However, limited capacity leads to testing of only a select number of product models, often bestsellers, which can yield suboptimal information. After outlining our mechanism, we develop a game to derive testable predictions. We show theoretically that a unique Nash equilibrium exists in which our mechanism yields optimal information, equivalent to a world of complete information, while selecting bestsellers does not. Subsequently, we confirm experimentally that our mechanism increases consumer surplus. In dieser Studie schlagen wir einen neuartigen Mechanismus zur Verringerung der Informationsasymmetrie bezüglich der Produktqualität zwischen Käufern und Verkäufern vor. Produkttestorganisationen wie Consumer Reports (USA) und Stiftung Warentest (Deutschland) versuchen, diese Asymmetrie durch die Bereitstellung glaubwürdiger Informationen zu verringern. Begrenzte Kapazitäten führen jedoch dazu, dass nur eine ausgewählte Anzahl von Produktmodellen, oft Bestseller, getestet werden, was zu suboptimalen Informationen führen kann. Nachdem wir unseren Mechanismus skizzieren, entwickeln wir ein Spiel um überprüfbare Vorhersagen herzuleiten. Wir zeigen theoretisch, dass es ein eindeutiges Nash-Gleichgewicht gibt, in dem unser Mechanismus optimale Informationen bereitstellt, was einer Welt vollständiger Informationen entspricht, während die Auswahl von Bestsellern dies nicht tut. Anschließend bestätigen wir experimentell, dass unser Mechanismus die Konsumentenrente erhöht.

As the usage of mobile data is significantly increasing, the demand for free public Wi-Fi also continues to grow. The ministry of science & ICT (MSIT) and some municipalities in Korea have been constructing free Wi-Fi networks on mass transportation for the benefit of users. In this study, we estimate the economic value of Wi-Fi for leisure based on demand function, which considers the time cost of using the internet. By using the 2016-2019 Korean Media Panel (KMP) data, we estimated the yearly consumer surplus of Wi-Fi and that of Wi-Fi in city buses. In this way, we showed the cost-benefit analysis could be carried out in public Wi-Fi projects.

The purpose of this paper is to show that export cartels are not necessarily harmful for consumers in the importing countries. Using the strategic trade policy model of Brander and Spencer (1985a), we show that, contrary to the harmful effect, product-market cooperation benefits consumers by affecting the trade policies. We further show that consumers in the importing countries are affected adversely if cooperation is among the governments of the exporting countries, instead of the exporting firms.

Reasonable transportation network layoutsarecritical for optimizing a comprehensive transport system. With the gradual development of a transportation industry from quantitative expansion to structural optimization, and transformation of various transportation modes from independent operation to integrated development, traditional comprehensive transport planning theories and methods have not adapted. In thispaper, a new planning concept is proposed from the perspective of economic equilibrium with theaim ofoptimizing a supply structure for a comprehensive transport passenger transportation corridor. An in-depth analysis was conducted of the internal mechanism of the dynamic equilibrium between supply and demand of this corridor,wherein the maximum of the globaltransportation demand subjectcustomer surplus wastaken as a target function, respective interest functions of a demand subject and a supply subject served as constraints to quantitatively optimize the supply structure of the passenger transportation corridor in comprehensive transport, and a Gradient Descent algorithmwasdesigned. The results show that the proposed model better reflectstheeconomic operation mechanism of a passenger transportation market in a comprehensive transport corridor (CTC), and prove that the supply structure of CTC is closely related to passenger flow, travel value distribution, a supply subject's scale rate of return,and travel time. These research results have important academic values in terms of improving passenger transportation corridor structure optimization in region-specific comprehensive transport that conforms to a market economy mechanism. This concept can be extended from single corridor planning to point-to-point and door-to-door transportation supply structure planning, andto comprehensive transport network planning and urban transportation planning without loss of generality.

This paper examines the impact of introducing high-speed trains on consumer welfare, taking the ensuing changes in train schedules into account. Based on the estimated demand model for travel which incorporates consumer's heterogeneous preferences for travel schedules into the standard discrete-choice model, I separately evaluate the impact from adding high-speed trains and that from changes in train schedules. The results indicate that consumers who travel between two cities connected by high-speed trains benefit from the introduction of high-speed trains, while some travelers whose choice set does not include high-speed trains face a reduced frequency of non-high-speed trains, resulting in significant losses.

It is widely believed that vertical integration in an environment without foreclosure, or more generally without any mechanism that restricts competition among firms, raises the welfare of consumers. In this paper we show that this can be overturned in a standard setting. We consider a vertical structure where each downstream firm purchases an input from its exclusive upstream supplier in the presence of a welfare maximizing government which taxes/subsidizes the product of the downstream market. We show that a single or multiple vertical integrations alter the optimal governmental policy in a way that hurts consumers: integration induces the government to reduce the optimal subsidy and, as a result, industry output and consumer welfare decline.

The present study aims to appreciate the economic value that might be added in case the Pamukkale Natural Preservation Area is used for recreational purposes. A survey study was conducted on totally 584 visitors who checked in Pamukkale Preservation Area in the period of June 2016 - June 2017. In the Individual travel cost method, poisson regression and negative binomial regression analysis were employed; total consumer surplus values were estimated as 33 Billion and 37 Billion, respectively. In the Regional travel cost method, multiple linear regression analysis was employed and total consumer surplus value was estimated as 71 Billion (sic). In the Contingent valuation method, the logistic regression analysis was employed and total willingness to pay was estimated as 30 Billion (sic). Recreational economic value of the Pamukkale Natural Preservation Area, included in the UNESCO World Heritage List, was estimated by both methods as about 30 Billion (sic) and 71 Billion (sic), respectively., C1 [Gundogmus, Mehmet Erdemir] Adnan Menderes Univ, IIBF, Isletme Bolumu, Aydin, Turkey., [Kalfa, Veli Riza] Pamukkale Univ, Honaz Meslek Yuksekokulu, Finans Bankacilik & Sigortacilik Bolumu, Denizli, Turkey.

It is widely believed that vertical integration in an environment without foreclosure, or more generally without any mechanism that restricts competition among firms, raises the welfare of consumers. In this paper we show that this can be overturned in a standard setting. We consider a vertical structure where each downstream firm purchases an input from its exclusive upstream supplier in the presence of a welfare maximizing government which taxes/subsidizes the product of the downstream market. We show that a single or multiple vertical integrations alter the optimal governmental policy in a way that hurts consumers: integration induces the government to reduce the optimal subsidy and, as a result, industry output and consumer welfare decline.

This thesis presents a simple electricity market model designed to calculate the effect of increased transmission capacity between Norway and Germany, and Norway and the UK, on the electricity market in the Nordic countries. It uses historical data on hourly supply and demand curves from Nord Pool day ahead market for the years 2015-2018 to simulate 2 undersea cables, which are under construction. The results show a price increase of roughly 1 EUR/MWh for the Nord Link cable (Norway-Germany) and around 2 EUR/MWh for the Nord Sea Link cable (Norway-UK). The cables would lead to redistribution effect on the Nordic market from consumers to producers of hundreds of million euros per year and welfare increase of EUR 8-16 million per year depending on the year and the cable. The price change and redistribution effect are in line with the results in previously published studies. However, the welfare increase found in this thesis is significantly lower than what was previously published.

Data from a unique nationwide recreational fishing survey in Sweden is used to estimate benefits of recreational fishing in Sweden, differences between regions and age groups, and how they relate to expected catch. The data targets the whole Swedish population, and as a consequence a large fraction of zero fishing days exists in the sample. To consider this, a zeroinflated Poisson model was used. Swedes fished around 16 million days in 2013, of which twothirds was spent on inland fishing, and one third was spent on marine and costal fishing. Expected consumer surplus per fishing day vary over the season, from about SEK 23 for winter fishing, to SEK 148 for summer fishing. The highest consumer surplus values are found among the youngest and the oldest age groups that were surveyed. Expected catch is an important determinant for number of fishing days, but catch increases mainly influence summer fishing.

Uncertainty in demand and high online return rates tend to generate a large inventory backlog after a hot selling season. Some well-known companies such as Burberry and H&amp, M choose to burn these backlogs, which is very unfavorable to the sustainable development of enterprises and society. The omnichannel BOPS (Buy Online and Pickup in Store) provides consumers with a new and convenient choice of purchasing channels. Considering the probability of online return, we build expected profit models for retailers before and after opening a BOPS channel based on consumer surplus and purchase ratio via an online channel, store channel, and BOPS channel. Then, we prove the existence of optimal solutions and obtain the joint optimization decision on pricing and ordering. The results show that, under certain conditions, when the proportion of online channel buyers increases, the retailers&rsquo, optimal decision before opening a BOPS channel is to reduce the price and increase the order quantity, and the retailers&rsquo, optimal decision after opening a BOPS channel is to simultaneously reduce the price and the order quantity. Whether or not a BOPS channel is opened, when the purchase proportion of store channel increases, the optimal decision of retailers is to increase the price and order quantity at the same time. Furthermore, when the online return rate, the cost of online shopping, the inconvenient cost of the store channel, and the inconvenience of the BOPS channel relative to store channel increase, the optimal decision of retailers is to simultaneously reduce the price and order quantity. Moreover, when the maximum psychological value of the product increases, the optimal decision is to reduce the order quantity while increasing the price. In addition, the opening of a BOPS channel increases optimal price, optimal order quantity, and maximum expected profit.

Constantly rising expenditures for pharmaceuticals and uninformed consumers require government intervention in firms’ pricing strategies. To this end, reference pricing systems are frequently employed as regulatory mechanisms. This paper considers a duopoly market with vertically differentiated firms: a brand-name firm and a firm producing a generic version or a branded copy (depending on competition type). It can be proven that the introduction of a reference price leads to lower equilibrium prices for both firms and that it can induce fiercer competition between brand-name and generic/branded copy firms. Additionally, it can be shown that reference pricing promotes generic usage under sequential price competition. When implementing a reference pricing system, an increased market coverage and, hence, an improved provision of medical supply can be achieved due to the lower prices and the stimulated demand for drugs. Even under a higher supply the consumers’ expenditures decrease under reference pricing. Finally, the model proves the superiority of reference prices over price caps and therefore indicates that reference pricing systems should be preferred.

Este escrito busca extender la teoría del monopolio en un contexto dinámico y vincular los hallazgos con el bienestar de los consumidores, eficiencia económica y poder de mercado. Para ello se presenta una medida de bienestar de los consumidores en términos intertemporales, así como la forma en que se relaciona dicha medida con la eficiencia y el poder de mercado. Finalmente, se presentan las decisiones del monopolio y se evalúa su efecto en términos de bienestar y competencia. Abstract: This paper seeks to extend the theory of monopoly in a dynamic context and link the findings with the welfare of consumers, economic efficiency and market power. To this end, a measure of consumer welfare is presented in intertemporal terms, as well as the way in which this measure is related to efficiency and market power. Finally, the decisions of the monopoly and its effect is evaluated in terms of welfare and competition are presented. Maestría

Recent advances in network science has encouraged researchers to adopt a topological view when characterising the robustness of supply chain networks (SCNs). However, topology based characterisations, without considering the heterogeneity among the supply chains which form the SCN, can only provide a partial understanding of robustness. Hitherto, focus of robustness studies have been on cyclic SCNs, with unweighted and undirected links representing general inter-firm interactions. Here, we consider the specific case of a material flow SCN with multi-sourcing, which is characterised by a tiered structure with directed and weighted links. The proposed method uses the multinomial logit model to estimate the utility levels of supply chains within the SCN, as perceived by a focal firm which is indicative of the SCN consumers. The robustness of the SCN is characterised by considering the degree to which supply chains overlap with each other as a cost in the logit formulation. Finally, using a randomisation scheme to generate ensembles of SCN configurations which preserve the number of connections at each firm, the configuration which maximises the consumer surplus for the focal firm is identified. The proposed method is implemented on a real world SCN to identify the optimal configuration in terms of robustness.

© 2018 The Author(s). Background: Multiple pharmacotherapy options are available to control blood glucose in Type 2 Diabetes Mellitus (T2DM). Patients and prescribers may have different preferences for T2DM treatment attributes, such as mode and frequency of administration, based on their experiences and beliefs which may impact adherence. As adherence is a pivotal issue in diabetes therapy, it is important to understand what patients value and how they trade-off the risks and benefits of new treatments. This study aims to investigate the key drivers of choice for T2DM treatments, with a focus on injection frequency, and explore patients' associated willingness-to-pay. Methods: A discrete choice experiment (DCE) was used to present patients with a series of trade-offs between different treatment options, injectable and oral medicines that were made up of 10 differing levels of attributes (frequency and mode of administration, weight change, needle type, storage, nausea, injection site reactions, hypoglycaemic events, instructions with food and cost). A sample of 171 Australian consenting adult T2DM patients, of which 58 were receiving twice-daily injections of exenatide and 113 were on oral glucose-lowering treatments, completed the national online survey. An error components model was used to estimate the relative priority and key drivers of choice patients place on different attributes and to estimate their willingness to pay for new treatments. Results: Injection frequency, weight change, and nausea were shown to be important attributes for patients receiving injections. Within this cohort, a once-weekly injection generated an additional benefit over a twice-daily injection, equivalent to a weighted total willingness to pay of AUD$22.35 per month. Conclusions: Based on the patient preferences, the importance of frequency of administration and other non-health benefits can be valued. Understanding patient preferences has an important role in health technology assessment, as the identification of the value as well as the importance weighting for each treatment attribute may assist with funding decisions beyond clinical trial outcomes.