We report several contingent valuation surveys to elicit willingness-to-pay for risk reductions associated with decreases in exposure to a chemical, PCBs, in the environment. We also develop Quality Adjusted Life Years (QALYs) from the survey using either standard gamble or time-tradeoff elicitation methods to explore the relationship between QALYs and willingness to pay (WTP), and to develop Q...

We investigate whether beer drinkers are willing to pay a price premium for organic beer compared to conventional beer. Moreover, we identify subgroups of consumers with different preference patterns by investigating whether specific personal characteristics of the purchasers have an influence on this willingness-to-pay. Specifically, results are reported from a survey including a stated choice...

Most contingent valuation studies in the literature utilized a pre-determined geographic market area for their sample frame. In other words, they did not include variables that would measure the extent of the geographic areas over which to aggregate willingness to pay. These studies implicitly assumed that the effects of geographic distance were moot; an assumption that could have led to an und...

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 ...

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...

This paper examines and compares households' willingness to accept (WTA)/willingness to pay (WTP) ratio for solar power equipment on their premises through both a novel experimental approach and conventional techniques. The experimental approach was administered by using a Becker-DeGroot-Marschak method and cheap talk, with open-ended questions of WTA/WTP. The results were quite striking. The r...

This paper presents an experimental study analyzing common consequence effects with binary choice, willingness-to-pay (WTP), and willingness-to-accept (WTA). Consistent with previous research we do not find clearcut evidence of fanning out in the absence of certainty effects. Violation rates of EU are more pronounced for WTP and WTA than for choice data. Moreover, there is a strong tendency for...

Contingent Valuation is now the most widely used method for valuing non-marketed goods in cost benefit analysis. Yet, despite the fact that many externalities manifest themselves as costs to some and benefits to others, most studies restrict willingness to pay (WTP) to being non-negative. This paper explores appropriate welfare measures for assessing losses and gains and demonstrates how these ...

This study applies data from a web-based survey conducted in mainland China to examine the determinants of consumers’ willingness to pay (WTP) for seven different product categories awarded with China Environmental Label and compare the mean WTP estimates among these categories. The Interval Regression method is used for estimation. The results indicate that Chinese consumers who regard environ...

On the basis of a low probability insurance experiment with substantial money on the line, we demonstrate that concern is an important driver of willingness to pay (WTP) for insurance when there is ambiguity surrounding the estimate. Concern still plays an important role when probabilities are given precisely. This finding explains why some individuals pay too much and others little for insuran...