This study advances, and experimentally tests, a new explanation for the disparity between willingness to pay (WTP) and willingness to accept (WTA)—a dynamic neoclassical theory based on the presence of commitment costs. While to date neoclassical models have not explained the observed data patterns well, we find that the commitment cost theory is able to explain adequately the causes and sever...

In this paper we aim to determine how the city of Eugene, Oregon compares to other cities in terms of its citizens’ willingness-to-pay (WTP) for recycling service. Also, we will determine what the expected WTP for Eugene residents and use that result to make policy recommendations. We use WTP as an indication of a city’s relative valuation of recycling services in their community. We will use W...

The objectives of this study are to determine the visitors’ willingness to pay for conservation of the resources at Gunung Gede Pangrango National Park (TNGP), and to determine the satisfaction of visitors towards the use of the ecotourism resources of the park. The dichotomous choice Contingent Valuation Method (CVM) was employed to determine the willingness to pay (WTP). A total of 423 respon...

Partial Identification of Willingness-to-Pay Using Shape Restrictions with an Application to the Value of a Statistical Life Economists often analyze cross-sectional data to estimate the value people implicit place on attributes of goods using hedonic methods. Usually strong enough assumptions are made on the functional form of utility to point identify individuals’ willingness-to-pay (WTP) for...

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...

BACKGROUND Health-state preferences can be combined with willingness-to-pay (WTP) data to calculate WTP per quality-adjusted life year (QALY). The WTP/QALY ratios provide insight into societal valuations of expenditures for medical interventions. METHODS The authors measured preferences for current health in 3 patient populations (N = 391) using standard gamble, time trade-off, visual analog ...

A survey in random-selected supermarkets in Beijing, the capital city of China, is reported to identify the attitudes and perceptions of consumers toward green-labeled milk, as well as their willingness to pay (WTP) for it, and to determine the factors that affect their WTP. The study reveals that the majority of households are quite familiar with green food and most of them take positive attit...

Measuring the Willingness to Pay to Avoid Guilt: Estimation Using Equilibrium and Stated Belief Models We estimate structural models of guilt aversion to measure the population level of willingness to pay (WTP) to avoid feeling guilt by letting down another player. We compare estimates of WTP under the assumption that higher-order beliefs are in equilibrium (i.e. consistent with the choice dist...

Four studies demonstrated robust withinand between-subject differences in willingness-to-pay (WTP) and willingness-to-accept (WTA) measures of the value of lottery tickets. Buyers and sellers attended to different numerical cues and interpreted the same numbers differently when setting these two kinds of monetary values. Affective infiuences appeared to guide the valuation process. Buyers with ...