Reference-Dependent Valuations of Risk: Why Willingness-to-Accept Exceeds Willingness-to-Pay
نویسندگان
چکیده
منابع مشابه
Reference-dependent valuations of risk: Why willingness-to-accept exceeds willingness-to-pay
The gap between willingness-to-pay (WTP) and willingness-to-accept (WTA) benefit values typifies situations in which reference points—and direction of movement from reference points—are consequential. Why WTA-WTP discrepancies arise is not well understood. We generalize models of reference dependence to identify separate reference dependence effects for increases and decreases in environmental ...
متن کاملTheoretical Demonstration of the Willingness to Pay ( WTP ) – Willingness to Accept ( WTA ) Gap Using Multiple Reference Points
The WTP-WTA gap refers to the often observed difference between the price an individual states he is willing to sell an item (WTA), and the price he states he is willing to pay for the same item (WTP). A common explanation for the gap is the so-called endowment effect, first proposed by Thaler (1980). In the literature the endowment effect is explained very simply by appealing to the concept of...
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Recent evidence from laboratory experiments suggests that important disparities exist between willingness to pay (WTP) and compensation demanded for the same good. Because a fundamental postulate in neoclassical theory is that with small income effects and many available substitutes, the willingness to accept (WTA) and WTP measures of value for a commodity should be roughly equivalent, this fin...
متن کاملA n exact relation between willingness to pay and willingness to accept *
I present a simple and precise relationship between the willingness-to-pay and the willingness-to-accept, or equivalently between the compensating and equivalent variations following an exogenous welfare change. One can be computed given the other as a function of income. 2003 Elsevier B.V. All rights reserved.
متن کاملDoes Anonymity Affect the Willingness To Accept and Willingness To Pay Gap?
Conventional value-elicitation experiments often find subjects provide higher valuations for items they posses than for identical items they may acquire. Plott and Zeiler (2005) find no difference in elicited valuations after implementing procedures that provide for anonymity and experience with the second-price mechanism. This paper investigates whether anonymity is a necessary for their resul...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2011
ISSN: 1556-5068
DOI: 10.2139/ssrn.1960786