Introduction

Abstract

Human behaviour is characterised by choices, long term as well as short term. Many of the choices we make have significant implications on the demand for services and infrastructure as well as the consumption of goods. The efficient functioning of society relies on the provision of sufficient supply to meet that demand. Governments and industry need to make decisions on infrastructure developments, the introduction of new services and the development and configuration of consumer products. At the policy end, there is also scope for steering demand, for example encouraging more environmentally friendly behaviour or a spreading of energy use throughout the day. Many of these decisions concerning pricing, supply or regulation have important financial, environmental and societal implications and need to be based on an understanding of consumer preferences, notably in the form of monetary valuations, and accurate forecasts of consumer demand. At the present time, potentially more than ever before, this need for reliable valuations and forecasts of demand is of crucial importance. Indeed, in the face of great economic uncertainty, coupled with increasing environmental concerns and ongoing security threats, the prioritisation between different major infrastructure developments is especially difficult, as recent examples of new high speed rail developments or the replacement of an ageing energy infrastructure have shown in a number of countries.