WTP vs. WTA: Christmas Presents and the Endowment Effect
نویسندگان
چکیده
ing from the sentimental value of the gift: If you would not have received the gift, how much would you be willing to pay to obtain it? In two other versions of the survey, to obtain a measure of their WTA, we asked the students instead Abstracting the sentimental value of the gift: How much would somebody have to pay you to induce you giving the gift away?ing the sentimental value of the gift: How much would somebody have to pay you to induce you giving the gift away? Since the questionnaires further differ in the order of these questions and questions regarding the gifts’ market values, we have four variants of the survey at our disposal. In the following empirical analysis we use only those versions of the questionnaire where the estimated market prices are asked first to avoid that this estimation is contaminated by considerations on personal valuations.
منابع مشابه
Theoretical 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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