Share This Article:

Economic Definition of willingness to accept. Defined.

Offline Version: PDF

Term willingness to accept Definition: The price or dollar amount that someone is willing to receive or accept to give up a good or service. Willingness to accept is the source of the supply price of a good. However, unlike supply price, in which sellers are on the spot of actually giving up a good to receive payment, willingness to accept does not require an actual exchange. This concept is important to benefit-cost analysis, welfare economics, and efficiency criteria, especially Kaldor-Hicks efficiency. A related concept is willingness to pay.

 

« wildcat strike | willingness to pay »

Permalink: http://glossary.econguru.com/economic-term/willingness+to+accept

Alphabetical Reference to Over 2,000 Economic Terms