On valuing non-financial outcomes

We learned some interesting things about valuing outcomes from a talk about a Pro Bono OR project at a community centre in Chester-le-Street, County Durham today:

Equivalent value–the cost of an alternative activity that a beneficiary could have paid for in order to achieve the same outcome.

Contingent value–the self-reported value of an outcome by a beneficiary.

Revealed preference technique–the total cost to a beneficiary of attending an activity, including hidden costs such as childcare, clothing, equipment and travel, even if these things cost the beneficiary nothing.  [Even if no monetary costs fall upon the beneficiary.]

Travel cost method–an implicit method where the beneficiary indicated how far they would travel to obtain the same outcome.  The value is how much it would cost to travel this distance.

National surveys–the Family Resources Survey (FRS) or other national surveys indicate how much familes spend on average for certain activities/outcomes, which can be used as a value for a given outcome.

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