Maximum monetary amount an individual would be willing to pay in exchange for a particular good or service (Cameron & James, 1987). It can be used to describe people’s preferences, aggregated over individuals to estimate a value of the good or service, or used to estimate benefits in a cost-benefit analysis.
Cameron, T.A, and M.D. James, 1987. Estimating Willingness to Pay from Survey Data: An Alternative Pre-Test-Market Evaluation Procedure. Journal of Marketing Research, 24 (4) 389-395. DOI: 10.2307/3151386