Concept · Pricing & Economics

Willingness to Pay

Origin: Van Westendorp / Conjoint Analysis

Biological Parallel

The marginal value theorem predicts when foraging animals should abandon a depleting resource patch. A bird feeding on insects in a tree has a maximum "willingness to pay" in time and energy—once the capture rate falls below what it could achieve by traveling to a new tree, it departs. This threshold is precisely analogous to consumer willingness to pay: the maximum cost (in time, effort, or calories) an organism will accept before seeking alternatives. Optimal foraging theory mathematically formalizes these biological pricing decisions.