hello,

Identify governments willingness to pay threshold (in your case, cutoff), or a range willingness to pay threshold. If there threshold, you can use the cutoffs to create a range.

Then you will have to create Net benefits at each cut off.

Net benefits = cutoff*walking distance - cost

create a net benefit variables for all the cutoffs.

Then estimate incremental net benefit using simple regression technique.

Using the p-value from each regression, you can generate the cost-effectiveness acceptability curve.

You can use this curve to determine the "probability of cost-effectiveness at each cutoff point".

This will help you determine the probability of cost-effectiveness of the intervention at a given cutoff.

You can use this as a form of sensitivity analysis, if you dont know "how much the government is willing to pay".

Good luck!

Thanks,

Ashish

Second line --

If *no* "there threshold, you can use the cutoffs to create a range.

Ok. Thanks

What to do?

1) Cost-Benefit: to translate your 2 objectives into money, not good

2) Cost-effectiveness: dual solution of Lange:not good

3) multi-obj. with weights. who will determine the weights?

4) multi-obj. with dimensionless measures OK

see in my biblio MOORA or MULTIMOORA: easy to use simple math and Excell

Use travel sales man algorithm. Or if you have equation for this then you can go for genetic algorithm to solve this problem. Else use any multi-criteria decision making method like TOPSIS, PROMETHEE, PCA.

Try to consider also the population density of the users because it will be cost ineffective for waste bin to be sited when it is not fully utilized which will cost more for picking up and maintenance of equipment & services needed for this.

By a densely populated area, multiple bins could be sited which is the style used where I reside. It takes approximate distance of 1 Kilometer apart but it also depends on the population of the area

Thanks for your comment on the post I made. I already know the population density and where to site the waste bins. Several quantities of waste bins provide diferent service levels, for example, the more the number of waste bins the more satisfied (measured in terms of effectiveness) is the public. However it results in additional cost to the government . I am looking for a scientific method to tradeoff cost and effectiveness. Can you assist?

I think I agree with the idea suggested by Sanjita Jaipuria

I would recommend the solution offered by Ashish Deshmukh, above. Choose a governmental willingness-to-pay threshold of some sort, then choose the option with benefits that are closest to (without exceeding) that willingness-to-pay.

For example, you could say that the value of a person's time is related to the median wage (x) of the city, so you would expect the government to be willing to pay at least (x) per hour saved of its citizens' walking time.