Abstract

This investigation extends the estimation of the measurements of welfare suggested by Hanemann (1984), to welfare measurements based on the distribution of the Willingness to Pay (WTP); in this way providing precise information to the deciding parties of policies in relation to the supply of public goods. To obtain the distribution WTP, the Bayesian method proposed by Benoit and Van de Poel (2012) is applied. To test the use of this methodology, a Monte Carlo simulation is done to determine its viability.