Tariffs And Willingness To Pay

Tariff setting affects the welfare of communities, economy-wide resource allocation, as well as the financial performances of public utilities. It requires multiple considerations such as: good governance, financial sustainability, distributive justice, economic efficiency, and fair pricing.

On the other hand, tariff setting and right pricing strategies require complex efficiency studies and cost-benefit analyses. In such cases, willingness to pay study is one of the methods, which reveals the consumers and stakeholders respond to different prices. Within a larger economic context, looking at how people interact with prices can become very important and examine its affect on overall economy.

TBSC consultants have fulfilled tariff studies and willingness to pay analysis for number of donor organizations in Georgia and developed complex methodology in that regard.