Common use of Willingness to Pay Clause in Contracts

Willingness to Pay. To ensure positive demand curves, the intercepts a(T) must be positive (equivalently, we can impose second order conditions for profit maximizing which would impose similar restrictions on demand parameters). Positive demand implies that WTP for the two generics (T ) (T ) α(T ) < β + γ α(T ) — α(T ), α(T ) < β + γ α(T ) — α(T ) and, α(T ) > γ β + γ 0 α(T ) + 1 γ β + γ α(T ). γ 1 0

Willingness to Pay. To ensure positive demand curves, the intercepts a(T) must be positive (equivalently, we can impose second order conditions for profit maximizing which would impose similar restrictions on demand parameters). Positive demand implies that WTP for the two generics (T ) (T ) α(T ) < β + γ α(T ) — α(T ), α(T ) < β + γ α(T ) — α(T ) and, α(T ) > γ β + γ 0 α(T ) + 1 γ β + γ α(T ). γ 1 0.