In this paper an economics approach to assessing community values in h
ealth care priority setting is examined. The approach is based on the
concept of 'willingness to pay' (WTP). Eighty two parents were intervi
ewed with regard to three aspects of provision of child health service
s. For each aspect a choice of two courses of action was presented. Pa
rents were asked which course of action they preferred and what was th
e maximum amount of money they would be prepared to pay for this rathe
r than their less preferred option. WTP responses are acceptable to th
e majority of respondents and appear to 'behave' in accordance with a
priori expectations. A method of assessing the influence of ability to
pay on preferences and WTP is outlined. Preferences and WTP do not ap
pear to have been unduly distorted by ability to pay. Use of WTP data
does have the potential to provide health care purchasers and provider
s with information on intensity as well as direction of the preference
s of members of the community. (C) 1997 by John Wiley & Sons, Ltd.